Swiggy and Zomato have pushed restaurants to the maximum commission base and yet barely break even on an order. Analysts say moving beyond food delivery is their only path to profitability
May 20, 2021
3 Min Read
“Your local restaurants need help. Show your support by ordering directly. That’s an Instagram Stories post by a leading restaurant operator, similar to several other posts with hashtags such as #orderdirect and #saverestaurants.
The ‘order directly’ campaign is gaining traction as restaurants have become more reliant on home deliveries amid Covid lockdowns, and are loath to pay Swiggy’s and Zomato’s increasing commissions.
These aggregators charge one of the highest take rates, or overall commissions, among major markets globally, according to an April report by CLSA.
Peak Commissions: The aggregators typically charge take rates of 20-25%. Of this, 15-20% represents commissions from restaurants. Another 5% is derived from advertising charges, according to CLSA.
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