How are Swiggy and Zomato managing to provide 50% discount without having any loss?

How are Swiggy and Zomato managing to provide a 50% discount without having any loss?

First of all, it's need to be clear that Zomato and Swiggy are not giving you a 50% Discount, it's the restaurant which has a 40% share in that discount, Only 10% bear by Zomato and Swiggy.

Second:

Most of you guys shared the screenshot of the price variation of Online ordering and Dine in the same restaurant.

Let me clear you one thing even by doing this a restaurant is not making any profit from Zomato and Swiggy even getting loss, Let's calculate how:

Supposed monthly sale from Zomato: 100000

Zomato commission 25% - 25000

Zomato Ads to come first in the listing - 20000 ( it's minimum I am mentioning)

Discount offers 40% Share - 40000

Packaging cost - 5000

Total: 100000 - ( 25000 + 20000 + 40000 + 5000) = 10,000

Now see what a restaurant is getting in that 1 Lakh only 10000 which includes Raw Material, operations Cost Etc. Thus a restaurant is getting loss only from these platforms.

Now some people will ask why we are delivering through zomato & Swiggy:

Well, People always prefer Discount so they are ordering through Zomato & Swiggy only, every month number of restaurant get listed on these platforms so if one restaurant is not offering discount there are many others to do it & being a customer you will prefer the outlet which is offering discount without considering the food quality.

Food is not Free it takes Time, Operation Cost, Raw Material and Packaging cost as well.

So if you really wish to eat a healthy meal with good quality ingredients say No to Discount and ready to pay.

Some people have doubt about this calculation and having questions so let me clear with proofs:

Difference between online & offline price :

Online price:

Offline price :

There is no difference between prices.

Commission:

I. E 22 +1.84= 23.84 + 18% Gst on Total commission they charge.

For new outlets, the commission fixed to 25% only.

The delivery charge is totally owned by Zomato, the restaurant will not get a single penny from it.

40/10 Ratio

This is the screenshot of the Zomato0300 campaign you can see it from your open eyes even it's more than that.

And for the 50% off a campaign, it's 40/10 as we got the calls for those campaigns so don't have a screenshot.

Talking about max discount how many people order the food more than the amount of 150–200 I think just 5–10% as mostly search for the combos.

Now Don't cry for Tax this is totally delivered to Government as it's an online transaction restaurant can't hide them & again deliver charge paid to zomato only.

Ads:

Yes, we can skip from ads but there are N number of restaurants who associated with zomato for long so they always up in the listing if a new restaurant will not run ad might possibly not get a single order.

I mentioned 20K is the minimum amount actual cost up to 35–50K.

And yes trollers you said it right nobody will visits to Restaurant because you will not get 50% off there and your legs may pain while walking to the nearest outlet.