You Pay 11% Premium While Ordering Food On Delivery Apps; These Add Annual Burden Of ₹12K To Households In Tier-I Cities: Study

We cannot deny our dependence on quick food delivery platforms. From breakfast treats to midnight snacks, apps such as Swiggy, Zomato, and magicpin deliver orders to our doorsteps at any time. By choosing convenience over going out, we end up paying more than ordering directly from restaurants and food joints. A recent study by The Mavericks India highlighted the price strategies of food aggregators, customers paying premium charges, and more.

Customers Pay More While Ordering Food On Delivery Apps

Influenced by the comfort of ordering food just by clicking on mobile phones, many households in India unknowingly report financial burdens every year. “Food Delivery Unwrapped: Uncovering Hidden Costs on India’s Aggregator Platforms” by Mavericks pointed out that customers pay about 11 per cent premium while ordering food on popularly used delivery apps. To evaluate the report, this integrated marketing agency took note of price data from more than 50 restaurants listed on Swiggy, Zomato, and magicpin.

The company also focused on proper data for different vegetarian and non-vegetarian dishes, according to a report by Business Standard. Next, Mavericks took data from all these restaurants’ delivery platforms and compared them for proper analysis and differences in pricing structure. Comparing available data between the above-mentioned food delivery platforms and restaurants’ channels, the marketing agency revealed aggregator platforms charging 150-200 per cent higher delivery costs.

Among the restaurants included in this report, around 46 per cent do not charge delivery fees while sending food using their platforms. The spike in overall costs of aggregator platforms includes apps’ delivery fees, packaging costs, and more such hidden charges. In addition, online apps add extra platform fees starting from ₹5.38 to ₹7. These are not included in the delivery channels of restaurants. About 15 per cent premium is included in dessert orders on aggregator platforms. Orders for pan-Asian dishes see about a 4-5 per cent jump.

Also read: DO NOT Throw Away Takeout Food Delivery Boxes Without Cleaning; Here’s Why

Ordering Food Online Is Becoming Expensive!

While an 11 per cent premium charge on overall bills might not seem exorbitant once or twice, the overall orders can lead to a huge splurge without even realising. The study discovered that customers pay a premium charge of ₹46 for each dish. With respect to Tier-II and Tier-III cities, the number of restaurants and food options is mostly higher in Tier-I cities. The report revealed average households living in Tier-I or metro cities in India face a financial burden of around ₹12,000 for using these delivery apps. These expenses turn into a total annual ecosystem cost of ₹9,000-₹11,000 crores.

Also read: Zepto Embarks Into Fast Food Delivery Sector With The Introduction Of Zepto Cafe; All About It

Will you continue using online food delivery apps?

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