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

Save A Lot Food Stores
SPONSORED CONTENT
Save A Lot Food Stores
SPONSORED CONTENT
Save A Lot Food Stores
SPONSORED CONTENT

Recommended Reading:

Comments:

comments powered by Disqus
LemonShark Poke
SPONSORED CONTENT

FRANCHISE TOPICS

ZIPS Dry Cleaners
SPONSORED CONTENT
Conferences
Hotel Savoyen, Vienna, Austria
JAN 28-29TH, 2020

Featured Opportunities

FLOYD's 99 Barbershop
Passionate about providing an unmatched experience for both their employees and Clients, the O’Brien’s have dedicated themselves to a culture...
ATAX
ATAX is a full-service national tax preparation and business services franchise. Take your first step toward owning a piece of the American Dream!
Minuteman Press International
Minuteman Press is the world's largest & number 1 rated printing & marketing franchise. Our business model features multiple revenue streams,...
Pronto Insurance
As a franchise owner with Pronto Insurance, you can capitalize on the incredible demand for our insurance products as you build a fulfilling life for...
Huddle House
Everyone knows a House is a good investment! Huddle House is a full service restaurant, serving delicious meals, cooked to order...

Share This Page

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 - 2019.
All Rights Reserved.