Prices listed on Swiggy/Zomato have at least 15-25% increased on the application, and that is without the delivery charges and taxes.
Unofficial sources suggest that Zomato and Swiggy charge anywhere between 18-25% of the commission per order per restaurant and here lies the neat trick of no one losing any businesses.
Restaurants need to have a minimum selling price in order to reach breakeven and eventually turn a profit. The eventual onus is on the customers to keep both the restaurant partner and Zomato/Swiggy in profit.
As of January 2022, let us add the Government to the profit pool as well. With 5% GST to be levied, the prices are, well, skyrocketing.
So let us do the math here: suppose your mixed veg costs you ₹100 from the restaurant when you are ordering directly.
Now, assuming that you live around 2 kilometres away from the restaurant, and are super lazy, you whip up your Zomato/Swiggy to order the same mixed veg. (I had to make it appealing to veg users too, I am a kattar non-vegetarian)
Now, the prices listed here are the prices that the restaurants will charge you. It will be anywhere between ₹125 to ₹150 depending on how greedy the owner/manager is. Covering its bases, the partner apps will charge 25% of the commission (Partner App Profit Scheme), which still leaves the restaurant with a little above ₹100 (Restaurant Profit Scheme).
On top of this, they charge extra for taxes (Government Profit Scheme) and for delivery (easily around ₹40-50 for 2 kilometres and therefore Delivery Boy goes brr).
Taking Zomato and Swiggy individually, both have similar setting up processes, with the exception of menu classification which is conducted by Zomato versus a product training workshop conducted by Swiggy.
Zomato charges 18-25% as commission depending on the order value, while Swiggy charges 18-23% on the total order value. However, the exact amount depends on different classifications like the size of the order, the type of restaurant, average order value, expected order volume, and delivery costs.
Looking at these apps from a customer’s point of view, Zomato is an all-in-one stop for foodies. From restaurant recommendations to curated collections throughout the country, Zomato has it all and the quirky advertisements and brilliant marketing wins the hearts and empties our pockets T_T.
Swiggy, on the other hand, has paid more attention to deliveries, with their USP being on point deliveries using their own fleet. Moreover, Swiggy seems comparatively lucrative because it does not have a minimum order amount criteria. This gives the customers a sense of flexibility and comfort.
The real question is “Who wins?” and the correct answer is “Not customers”.
Image Credits: Google Photos
Source: Author’s own opinion + Interviews on record
Find The Blogger: Shouvonik Bose
This post is tagged under: Swiggy, Zomato, delivery partners, delivery personnel, bills, price hike, restaurant prices are lower, Swiggy vs Zomato, taxes, delivery charges, money