Swiggy, Zomato earnings
Nowadays, food delivery and grocery delivery apps like Swiggy and Zomato have become a part of people's everyday life. We order food with one click on the app, but have you ever wondered how these platforms earn money and how much the delivery workers get?
Platforms like Swiggy and Zomato charge huge commission on every order from restaurants. For example, Swiggy typically charges restaurants a commission of 15% to 25% of the total order amount, and this rate can vary depending on the restaurant's location, popularity, and order volume. If a restaurant sells orders worth Rs 1 lakh in a month through Swiggy, then commission of around Rs 20,000 will have to be paid to Swiggy.
Due to these huge commissions, restaurants face pressure on their profits and many times they have to show higher prices on the app than their original rates so that they can bear Swiggy's share and other expenses. Due to this, the same food seems a little more expensive to the customers.
When we order food, we have to pay a separate delivery fee along with it, but the delivery partners do not get that full share. In some cases, delivery workers get bonuses based on orders and distance on top of a fixed base payment. Overall, the earnings of these delivery workers are not fixed on every order, but depend on the distance, time and number of orders. Generally they get around Rs 20 to 40 per order.
If the delivery distance is longer or the order is placed during peak time, the earnings increase slightly. Incentives are also available during lunch and dinner time, rain or on completing more orders. However, the workers themselves bear the expenses of petrol, mobile and bike, due to which the real earning gets reduced.
On the other hand, platforms like Swiggy earn huge money in many ways including commission from restaurants, delivery from customers and platform fees, promotional fees. These platforms use these fees to fund technology, marketing, branding and running their logistics networks.
