There are basically two types of files. Text files and binary files.

Most information are stored in text files so humans can easily understand it, and it’s easier to find errors, review, parse. But text storage takes more space than binary files. And many complicated softwares normally need multiple text files or data files, many of them just store them together as a zip file so that it’s easier to handle. Examples are .docx,.pptx, etc files in MS Office, try unzipping them and see what they contain. Zipping also has advantages of reducing file sizes.