Zomato and Swiggy are food delivery services that have gained wide popularity in recent years. They both have a significant market value and deliver food to millions of people through their delivery boys.
Zomato and Swiggy earn money by charging a commission from the restaurant based on the placed order value.
1. Swiggy and Zomato Partner Restaurant Commission
While users pay a delivery fee, these food delivery services earn through restaurants who pay a commission for each delivery. It is then split among the delivery partner and the company.
The commission can range from 15-25% plus GST.
2. In-App Advertising
There are no gains for new restaurants on these food delivery apps in the initial stage. Therefore, they allow the restaurant to feature themselves with ads. The cost of each ad varies as per its location.
3. Delivery Charges
Delivery charges are more to do with the business to keep the delivery partners incentivized such as during bad weathers the delivery charges rise considerably.
For better incentive more people deliver food and keep the ratings high.
4. Cashless Payment
Cashless payments via Zomato have now been introduced where the merchants pay Zomato a percentage cut of the overall transaction amount.
The payment at Swiggy is based on your work performance. If you make a delivery of 50+ items in a week you get an incentive whereas in Zomato you get an incentive without any rejection in delivering an order and if your touch point is 55.
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