Delivery Wars in India Heat Up as Restaurateurs Push Back
Company Added
Company Removed
Apply to Request List

Delivery Wars in India Heat Up as Restaurateurs Push Back

Delivery Wars in India Heat Up as Restaurateurs Push Back

While "delivery wars" continue to rage in the U.S. restaurant sector, with franchisees caught between keeping up with competitors and paying 20 to 30 percent commissions to third parties, delivery wars are also heating up worldwide.

A recent article in the New York Times, India's Restaurants Rebel Against Food Delivery Apps, zeroes in on what's happening with delivery in India. The article begins: "Frustrated by the steep commissions and discounts that apps like Zomato and Uber Eats push on restaurants, thousands have started a movement to #Logout from them."

Citing the experience of Aakanksha Porwal, who owns a small diner in India and signed up with Zomato - a restaurant aggregator and delivery service founded in India in 2008 that operates in two dozen countries - the article says that her goal was to expand her business. However, the article continued: "But three months and 150 free dishes later, Ms. Porwal has grown disillusioned.

The free food has cost her about 20 percent of her revenue, on top of a Zomato Gold sign-up fee of about $550, she said. Gold users, who pay about $14 for a year of buy-one-get-one-free dining at 6,000 restaurants, are often rude and demand extra discounts, she added. And Vahnilla [her diner] pays Zomato a steep commission of 28 percent on every order that is delivered.

'Zomato is the greatest thing to happen to a customer,' Ms. Porwal said. 'The consideration for restaurant owners is literally nothing.'

Now, in a collective primal scream, India's restaurants are rebelling against Zomato and other leading dining apps."

For more on the restaurant delivery situation in India, including comments from other frustrated restaurateurs and the response from Zomato's CEO, read the full article here.

Published: September 12th, 2019

Share this Feature

Eggs Up Grill
SPONSORED CONTENT
Eggs Up Grill
SPONSORED CONTENT
Eggs Up Grill
SPONSORED CONTENT

Recommended Reading:

Comments:

comments powered by Disqus
The Joint Corp.
SPONSORED CONTENT

FRANCHISE TOPICS

Scooter's Coffee
SPONSORED CONTENT
Conferences
Caesar's Forum, Las Vegas
SEP 1-4TH, 2020

Featured Opportunities

Bruster's Real Ice Cream
If you are looking for a business that is meaningful and fulfilling, you should take a closer look at Bruster’s® Real Ice Cream Franchise!
Pigtails & Crewcuts
Pigtails & Crewcuts is a recognized brand dedicated to making haircuts fun for kids. Our business model was designed with families in mind...
Piara Pizza
At Piara Pizza, we believe in using fresh, high-quality ingredients to deliver enormous flavor that's Fresh and Ready!
Lightbridge Academy
Lightbridge Academy has a way of making parents and children feel like they’re special. Here, they are surrounded by a Circle of Care that’s more...
Scooter's Coffee
The success of the Scooter's Coffee franchise is based upon a commitment to quality products, fast and accurate service, and always delivering...

Subscribe to Our Newsletters

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2020.
All Rights Reserved.