Zomato, Swiggy Orders Drop By 6% Due To High Delivery Charges; Now Pay Upto Rs 45 Extra For Delivery!

The customer are now paying more to get their food delivered to them as Zomato and Swiggy, both have unleashed new, expensive pricing models.

As per reports coming in, both Zomato and Swiggy have increased their delivery charges over the last six months by tightening order cancellation policy, vigorous discounts and raising the prices of their loyalty programmes.

Restaurants and analysts listed with these platforms admitted that the reduced discounts have indeed affected their business.

In fact, an analyst revealed that an estimated 5 to 6% drop in the order volume per month has been witnessed since October for Zomato.

Last week, Zomato acquired Uber Eats in an all-stock deal paying roughly $350 million which in return giving Uber 10% stake in Zomato.

Is there any link between this increased delivery charges, and the duopoly of Zomato and Swiggy in the Indian food delivery market?

Customers Are Now Ditching Zomato, Swiggy Due To Higher Charges?

• Zomato has introduced “on time or free delivery” incentive which can be broken down as if a consumer pays extra Rs 10 on select restaurants, he/she will receive guaranteed on-time order and if Zomato delivery executive fails to do so the order is given free to the consumer.
• They have also increased the prices of the Gold membership by 80% and started selling by suggesting side offerings at checkouts to increase average order value. The Gold service was initially Rs 999 per year which will now cost Rs 1800 per year.
• India’s biggest food delivery app: Zomato is now imposing dynamic delivery charges wherein the final price will depend on many factors like high demand, distance, order value, and restaurant.
• Swiggy has also increased its delivery charges in some cities, made strict cancellation policies and order escalations and increased their night-time delivery fees in select locations.
• Swiggy has also spiked the charges of their loyalty program ‘Super’ by 20%. The company now charges Rs 349 for a three-month membership which previously amounted to Rs179.

These anti-consumer decisions by Zomato and Swiggy, the only players left in the food delivery market, can be considered a duopoly move, and customers are clearly having an unfair deal here.

What Will The Foodie Do Next

In India, the discounts catch the public’s eye more than anything else. 

The Indian crowd is drawn towards discounts in every field and food tech sector nonetheless. 

The reduction in discounts and hike in the prices by the two food delivery companies has made the consumers go physically to the restaurant to consume food or opt for the restaurant’s in house delivery system.

The majority of the consumers of food delivery apps come from salaried households, where both husband and wife work in offices. Such increased delivery charges and associated high tariffs will severely impact their household budget, and take them away from them.

As per some reports, Amazon has started testing its food delivery service in India, and hopefully, this will turn the tides.

Stay tuned, as we will keep you updated with the latest news about the future of food delivery in India.