Zomato since forever has remained on the top of our lists of favorite food delivery apps but did you know with every order you place with Zomato, they need to pay an additional Rs.25?
Yes, you read that right! In a shocking revelation by Zomato, they shared how with every delivery they make they lose an average amount of Rs.25 even after being paid the delivery charges by the customers. Zomato added to this by mentioning that the cost of the delivery last year was Rs. 86 and that it has come down to Rs.65 this year after they made a better utilization of their delivery fleet. But to imply that in order for the company to even reach the break-even point they would need to charge Rs.65 per delivery.
Can you imagine yourself paying Rs.65 per delivery? Simply no! Keeping the same nature of the Indian audience in regards with spending money in mind Zomato has been paying its fleet the additional costs by itself which led them to a net loss of Rs.2000 crore in FY2019 only. While the loss was more than 24x over that of the previous year, its’ revenue rose to a meager 3 times.
Before jumping to any conclusions a big factor that needs to be considered is the introduction of new players like Swiggy, Uber Eats and Food Panda in the market which has led to Zomato, who was the king of this market suffer losses.
With news of Zomato expanding into newer markets we hope that it is back with a bang!
