ETtech’s Post

Zomato & Swiggy enjoy duopoly today but they should not assume that the consumer behavior will not change if they increase their fees beyond a point. Invariably even after the 'generous' discounts offered by these platforms; consumers end up spending more on these platforms as compared to ordering directly from restaurant. The menu prices are higher to begin with & then you have handling / packaging / delivery +++++ fees that are charged on top. When that outweighs the convenience, consumer behavior will change again.

Product Observation: Zomato Gold Vs Swiggy One Lite Membership At Rs 99 for 3 months you can either buy Zomato Gold Membership or Swiggy One lite membership. Zomato Gold offers free deliveries above Rs 199, up to 30 % discount on food delivery, and up to 50% on dining. The focus is on attracting foodies. Zomato Gold does not include Blinkit(grocery delivery), neither does Blinkit offer any membership of its own for grocery delivery, Swiggy One Lite offers 10 free food and 10 free grocery deliveries, with up to 30% discount on food delivery. The focus is on providing an affordable food and grocery ordering experience. So, the decision to get a Zomato or Swiggy membership would depend on the needs of the user. App stickiness may also be an important factor. Which one will you opt for, at Rs 99 for 3 months? #productobservation #swiggy #zomato #blinkit

Recently have you watched a sharp rise in prices on Swiggy/Zomato compared to the prices in the restaurant? 🧐 I tried ordering dosa from the same restaurant, I ate few days back and noticed this price difference, Price of a dosa in the restaurant = Rs 75 (excl GST) Price of a dosa on Swiggy/Zomato from the same restaurant = Rs 105 + Delivery charges = Rs 30-40 + platform fee = Rs 3-5 Total Price of a dosa on Swiggy/Zomato from the same restaurant = Rs 138-150 (excl GST) Gone are those days of 50% discounts on briyani's and endless offers from these food delivery platforms. They booked loses initially to penetrate into the market and importantly to habituate us to use their services. These platforms understand the consumer behaviour exceptionally well. Now that we got habituated, online orders contribute a significant percentage of sales mostly in all resturants. 📈 And these delivery platforms have strategically increased their commision from restaurants to 20-30%, to make up for their initial losses with endless offers (initially their commision was around 5%). As a result, resturants doesn't have an choice but to raise the price to maintain their margin, with the increased cost finally borne by consumers. Also, don't forget the delivery charges based on the distance & the order value. 🍽️💸 These platforms have huge amount of data about each restaurant and day wise best dishes , consumer demand on weekdays/ weekends, consumer preferences and choices. It's the same strategy used by Google Pay/ OLA/ JIO did to habituate consumers to use their platforms/services. As consumers, it’s our duty to be mindful of these changes and foresee the implications when new offers arise. 🛍️ Have you experienced the same price hikes? What are your thoughts about this? For more information watch this video https://lnkd.in/ddSHQ3ci

𝐙𝐨𝐦𝐚𝐭𝐨 𝐚𝐧𝐝 𝐒𝐰𝐢𝐠𝐠𝐲 𝐔𝐧𝐝𝐞𝐫 𝐅𝐢𝐫𝐞: 𝐅𝐞𝐬𝐭𝐢𝐯𝐞 𝐒𝐞𝐚𝐬𝐨𝐧 𝐅𝐞𝐞 𝐇𝐢𝐤𝐞 𝐒𝐩𝐚𝐫𝐤𝐬 𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐎𝐮𝐭𝐫𝐚𝐠𝐞 𝐁𝐚𝐥𝐚𝐧𝐜𝐢𝐧𝐠 𝐂𝐨𝐧𝐯𝐞𝐧𝐢𝐞𝐧𝐜𝐞 𝐚𝐧𝐝 𝐂𝐨𝐬𝐭 Food delivery apps like Zomato and Swiggy have revolutionized dining, bringing variety and convenience to customers’ doors. However, a recent ₹10 platform fee hike during the festive season has sparked customer frustration over rising costs. As demand for festive celebrations drives orders, many are now questioning if the added cost of convenience is justified. 𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐁𝐚𝐜𝐤𝐥𝐚𝐬𝐡 𝐨𝐧 𝐒𝐨𝐜𝐢𝐚𝐥 𝐌𝐞𝐝𝐢𝐚 News of the fee hike spread quickly on social media, with customers expressing frustration over what they see as an increasingly complex cost structure. Food delivery, which once featured low or no delivery charges, now includes GST, delivery, packing, and platform fees. One user voiced this frustration: “We went from free delivery to paying GST, delivery, packing, and now a platform fee!” Another user criticized the timing, accusing the companies of capitalizing on high festive demand. This frustration also extends to restaurant owners who already pay commissions to list on these platforms, feeling that customers are now covering both sides of the cost. Together, these additional charges have many wondering if the convenience of these platforms is becoming too costly. 𝐀 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐌𝐨𝐯𝐞 𝐀𝐦𝐢𝐝 𝐇𝐢𝐠𝐡 𝐃𝐞𝐦𝐚𝐧𝐝? While customer dissatisfaction is clear, the fee hike may reflect a business strategy. Both Zomato and Swiggy operate on an asset-light model, meaning they don’t own restaurants or manage large inventories. This low-overhead model is profitable but limited, prompting a need for strategies that offset rising operational costs. The festive season presents a prime time for these companies to introduce fees, as demand is high, and customers are more likely to tolerate temporary increases. With millions of daily orders, a ₹10 fee could generate significant revenue. Some analysts speculate that if this fee proves acceptable, it may become a permanent fixture, altering the platforms’ pricing model to manage expenses better. 𝐀 𝐒𝐡𝐢𝐟𝐭𝐢𝐧𝐠 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞 𝐟𝐨𝐫 𝐎𝐧-𝐃𝐞𝐦𝐚𝐧𝐝 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 As Zomato and Swiggy continue to grow, consumers and analysts alike will watch closely. This fee increase offers a pivotal moment for these platforms to reassess their pricing models. Whether it enhances profitability or risks customer loyalty will shape the future of food delivery in India. #FoodDelivery #Zomato #Swiggy #PlatformFee #ConvenienceCost #OnDemandEconomy #CustomerExperience #FestiveSeason #FoodApp

#RestaurantPartners are at the heart of Swiggy's success. It is natural for #Swiggy to help them reach prolific sales numbers. With Smart Links, Swiggy’s latest development, restaurants can promote themselves on social media and get users to their menu page. From single outlets to huge chains, there have been multiple success stories. Here's how one link is fuelling growth and customer acquisition across the country. #SwiggyIndia #WeAreSwiggy #SwiggyCatalyst

Impact of Delivery Radius Restrictions: A Personal Perspective on Changing Consumer Behavior In recent months, platforms like Swiggy and Zomato have made a significant change to their delivery policies, reducing the free delivery radius for premium customers from 10 kilometers to just 5 kilometers. As a regular user of these services, I’ve seen, how this shift has impacted my ordering habits—and ultimately, my overall dining experience. When the delivery radius was 10 kilometers, the variety of restaurants and cuisines available was vast. It offered an exciting opportunity to explore new dining options that I might not have discovered otherwise. The joy of trying out a hidden gem just a bit farther away was a big part of the experience, and the convenience of having it delivered directly to my doorstep made me feel truly spoiled. However, with the radius now restricted to 5 kilometers, my choices have narrowed considerably. Many of my go-to restaurants now lie just beyond this range, forcing me to either settle for a less appealing option or, in some cases, drive out to pick up my order. While 5 kilometers isn’t a significant distance for most people to travel, it does raise an interesting question: if I have to limit myself to this radius, might I be more inclined to simply dine out instead? This shift in delivery policy has broader implications, not just for consumers but for the businesses themselves. By limiting delivery areas, platforms like Swiggy and Zomato risk alienating loyal customers ( In my opinion ) who, faced with fewer choices, may turn to local dining experiences instead. For restaurants, this could mean fewer delivery orders and potentially even a loss of exposure to a wider audience. So, what’s the solution? In my view, a more balanced approach could be the key. Extending the delivery radius back to 10 kilometers could significantly improve the consumer experience, fostering a greater sense of variety and discovery. Yes, this might come with a small increase in delivery fees—perhaps an additional Rs 5 or 20 but I believe many customers, myself included, would be willing to pay this premium for the convenience and broader selection that a larger delivery radius offers. Ultimately, the goal should be to strike a balance: ensuring that customers are satisfied with their dining experience while still supporting local restaurants. A wider delivery radius doesn’t just enhance choice it also sustains the vibrant culinary ecosystem that makes platforms like #Swiggy and #Zomato so appealing in the first place. In conclusion, while I understand the logistical challenges behind delivery radius restrictions, I urge companies to reconsider their policies. After all, dining is more than just a transaction; it’s an experience. And in today’s fast-paced world, the ability to enjoy a wide range of options from the comfort of home is a privilege. #CustomerExperience #FoodTech #FoodDelivery #Swiggy #Zomato #ConsumerChoice

🍽️Should You Order Online or Dine In? Exploring Your Options📲 In the age of convenience, food delivery apps like #Zomato and Swiggy have transformed how we enjoy meals. As prices rise and customer frustrations grow, many are left wondering: is it better to order online or dine at a restaurant? Or should we wait for new apps to emerge that might offer better value? In recent times, food delivery services like Zomato and #Swiggy have become a staple for many, offering convenience at our fingertips. However, a growing number of customers are expressing their dissatisfaction with the rising fees associated with these platforms. A notable case emerged from Chennai, where a user took to #X to share a striking comparison between prices on the delivery app and those at a local favorite, Murugan Idli Shop. The revelation? The same food items were nearly Rs 184 cheaper when ordered directly from the restaurant, leaving the customer shocked and disappointed. Ultimately, it is essential to remember that a great dining experience should not come at the expense of our wallets. And to order online or dine in depends on your priorities as convenience and variety are paramount, online ordering may be the best choice and if you value quality, experience, and supporting local-businesses, dining in could be more rewarding. This encourages food #delivery companies to prioritize transparency and fairness in their pricing strategies. By staying informed and advocating for better practices, customers can help shape a more equitable food-delivery landscape. algorithmic tags: to: Zomato Swiggy Swiggy Dineout Zomato India source: News18 India (google news)

𝐅𝐨𝐨𝐥𝐞𝐝@𝟏𝟗𝟗 Swiggy and Zomato members get free deliveries on orders 𝒂𝒃𝒐𝒗𝒆 𝗜𝗡𝗥𝟭𝟵𝟵 when ordering from restaurants within 7km (don't know if the numbers are a little different in different cities but the funda will be the same). Now when you try ordering from most restaurants through these apps you will find plenty of dishes priced exactly @199. They already charge a hefty premium on the food price compared to the actual restaurant menu price and could have easily priced these dishes @200 but why would they?! So if you plan to order a single dish from the plenty of choices @199, you will always be charged a hefty delivery fee on top. In order to avoid the delivery fee, you will then order additional dishes, thus adding to your overall cost and paying further inflated prices per dish (oh yes, you also get the mouth watering Analogue paneer and the fantastic deals of 30% discount 𝚞̲𝚙̲𝚝̲𝚘̲ ̲𝚁̲𝚜̲𝟻̲𝟶̲) 😂 Ofcourse, half lies go by the name of business models these days. Anyways good luck with finding dishes @200!

Zomato and Swiggy apps impact to customers: Zomato and Swiggy have increased their platform fee by 20% to Rs 6 per order in key markets like Delhi and Bengaluru. This fee hike is a strategy to boost their revenues and improve unit economics, directly impacting customers with higher costs per order. The move was positively received in the market, with Zomato’s shares rising 4%. The platform fee helps these companies enhance their take rates, alongside other revenue sources like advertising charges and restaurant commissions. However, restaurants face challenges with these commissions, often resulting in higher menu prices on delivery apps compared to in-restaurant dining.

Yesterday, as part of our Sunday routine, my family usually dine out or order food online through platforms like Zomato or Swiggy. However, since we were near a famous eatery that only offered food parcel services, we decided to get a food parcel from them instead of ordering online. To our surprise, despite being in line and waiting for our food parcel close to hour, the eatery prioritized fulfilling Zomato and Swiggy orders over those of us waiting in person. This led to complaints and frustration among the customers present. It became apparent that Zomato and Swiggy have strict timelines that restaurants must adhere to when preparing and delivering food to their delivery partners. Failure to meet these timelines could result in negative ratings or penalties for the restaurant. As I thought about what I would do in this situation as a eatery owner, several options came to mind: 1. Prioritize fulfilling orders from Zomato and Swiggy to maintain a consistent flow of orders and avoid damaging my relationship with these platforms. While the margins may be lower with online orders, the volume of orders from these platforms can make up for it. 2. Prioritize fulfilling orders from loyal customers who are physically present at the restaurant. Delaying their orders may drive them to order from Zomato or Swiggy in the future, leading to a dependence on these platforms and potentially lower margins due to higher fees. 3. Consider hiring additional staff to handle the influx of customers on Sundays. However, since the rush is only on weekends, this may add to operational costs. Hiring temporary staff for Sundays may also compromise the quality and consistency of the food. As a consultant for businesses and their financial needs, I understand the challenges of making these decisions. It’s a tough dilemma that requires careful consideration of customer loyalty, operational efficiency, and financial implications. Any advice or suggestions on how you would navigate this situation will be helpful. Pls note - As a customer, I enjoyed my food and then decided to order online next time. #SundayDilemma #BusinessCase