16th Feb 2016: Only a week after Zomato turned profitable in 6 markets, the company has decided to change their business model in order to wipe out remaining competition once and for all. Zomato cofounder Pankaj Chaddha has said that the company will stop charging commission from restaurants covered by it ! The new business model is expected to apply to orders generated from platform as well as to last mile delivery services.
The company currently charges 10-15 % commission per order. The commission depends on the rating of the restaurant – the better the restaurant, less is the commission. The company today has about 12,000 restaurants on board in India alone.
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The move seems to be coming as a strategic next move for the company after breaking even in 6 countries only a week ago. The company will now try to capture the market even deeper with this move which the company expects will wipe out competition.
The company is also planning to raise $200 million in April and is currently valued at $1.5 billion !
(Image Credits: startitup.sk)