How the food delivery commerce works?*
the *MAGIC* of *HOME DELIVERY* *at whose cost*
If I order 2 idlis with chutney and 1 masala dosa with sambar, from a nearby restaurant which is 1.5 km from home, the total bill comes to 177.3 rupees. Very normal darshini kind of a hotel. You can choose any aggregator like Swiggy or Zomato.
1. Food - 110/-
2. GST - 6.30
3. Packing - 16/-
4. Delivery - 45/-
Total - 177.30
This is the customer bill.
You pay 67.30 extra, or 38% of what you spend on this order is on Non-food services. 62% is for food.
So, the broad allocation is 62% for food, 5% to the government, 9% for packing and 25% for delivery.
Now, let us take a look at how the restaurant reconciliation happens, after 10 days of the transaction.
Amount paid to the restaurant = 70% of the order value. Zomato and Swiggy take 30% as sales commission.
Restaurant receives - 0.7 X 110 = 77/-
Amount paid to delivery partner = 15/-
Amount paid to government = 6.30
Amount that Zomato or Swiggy pockets = 79/-
Now, if you analyze percentages and look at how much each of them have benefited from the transaction, you will realize this.
Food - 43.4% and non food - 56.6%.
Restaurant share - 43.4%
Delivery partner share - 8.5%
Government - 3.5%
Zomato / Swiggy share - 44.6%
So, what actually happens when this is how the transaction actually looks like?
1. Quality and quantity of food.
Your dine in experience is going to be much different as compared to food being ordered through a 3rd party.
2. Highly inflated prices on aggregator portals.
As a restaurant, if I need to run discounts and still manage to keep riding the gravy train, I need to raise my prices by 150% at least. That only means that the aggregator makes more money and the customer pays for it.
3. Food delivery in itself is not a sustainable practice with our inefficient solid waste management, use of plastic and the extremely affordable fuel prices.
Still hungry. Please reach for a chopping board and a frying pan and enjoy
Time to dig in.
*delivery partners are making more money than restaurants...*
*very useful information everyone should think and decide and share
