Consumers pay an average 11% premium when using popular food delivery apps over direct restaurant ordering, according to a study conducted by Mavericks.
The report, which analysed pricing data from over 50 restaurants on Swiggy, Zomato, and Magic Pin, alongside restaurants’ own delivery channels, including base price, delivery fees, GST, packaging charges, and additional surcharges, as of August 21, found that while the base price premium on aggregator platforms amounts to only 1.6%, additional costs such as delivery fees, packaging charges, and platform-specific fees contribute to 11% overall price increase. These platforms impose additional platform fees ranging from Rs 5.38 to Rs 7, which are absent when ordering directly from restaurants.
Aggregator platforms charge 150-200% more in delivery fees compared to restaurants’ own channels. Notably, 46% of restaurants surveyed, don’t charge any delivery fee through their own channels, while almost all of them indicate a delivery fee on aggregator platforms.
Desserts on aggregator platforms are consistently priced at a premium of up to 15% compared to direct restaurant ordering. Vegetarian dishes face an 11% price bump on aggregator platforms, despite only 25% of customers being vegetarian.
Chain restaurants with multiple branches tend to charge lower delivery and packaging fees. However, the report notes that aggregators typically do not pass on these savings to consumers, maintaining relatively consistent pricing across different types of establishments. The report also suggested that aggregators generate more than Rs 400-460 crores annually via packaging charges alone.
The study also examined the value proposition of premium subscriptions offered by aggregator platforms. It found that these subscriptions often provide limited added value, especially for orders above Rs 199, where non-subscribed users can access similar advantages without any subscription.
Meanwhile, dine-in restaurants faced Rs 6.5 higher delivery fees on average, potentially indicating a pricing strategy based on perceived premium status or customer willingness to pay.
From: financialexpress
Financial News
