How do food delivery apps like Zomato, Swiggy or any other make money?

Hey! Whether you're a busy professional or just looking for a hassle-free lunch, Grubhub has something for everyone. With just a few clicks or a handy mobile app, you can browse a huge range of restaurants, easily customize your order, and have the food you want delivered straight to your doorstep. Food is delivered very quickly, and if there is a problem with this, then you don’t have to look for the grubhub number but let them know about it online, and this unpleasant situation will be corrected.

The food delivery industry is flooded with a number of applications. The stakeholders attached to the food delivery app are restaurant owners, delivery executives, and the admin. they are making revenue in various forms. Here, I list some of the ways they generate revenue. 

1. Delivery charges- Delivery executives attached to the application assign a charge to collect the food package and deliver it as per distance traveled and the time for the delivery trip. 

2. Fee for Top of Searches- There is a fee assigned by the service owner to place the delivery players and the restaurant owners at the top of the searches in the customer's view. 

3. Commission Fee- For every delivery completion, the deduction of the amount from the payment is one type of revenue. 

4. Fee for High-priority Delivery- Assigning the fee for handling high-priority deliveries during emergency scenarios. 

Generally, Food delivery app like zomato or swiggy has various no. of earning sources but the most common earning sources are Delivery Charges, Commission from the restaurant, Users premium subscription, Restaurant Promotion, Advertisements, etc. Each of the above-mentioned sources is mentioned below.

Source of Earnings in Food Delivery App

1. Delivery Charges

2. Commission

3. Restaurant Promotion

4. Advertisements

5. Surcharge

To know more about every aspect of developing an app like zomato read this blog - Cost to develop a food delivery app like Zomato