Food delivery via aggregators amounts to Rs 9,000-11,000 crore of additional costs annually: report

Ordering food through delivery aggregators leads up to a steep Rs 9,000-11,000 crore of additional costs annually on average, a new report on the food delivery sector said. These costs include convenience fee over direct restaurant orders and include prices for delivery, packaging and subscription fees, the report, by marketing agency Mavericks India , noted. It said that premiums charged by large aggregators in India generate an overall additional cost of Rs 9,000-11,000 crore, with cumulative packaging premiums alone generating an annual cost of approximately Rs 400 crore.

According to the report, food delivery aggregators charge an average premium of Rs 46 per dish compared to direct restaurant orders, aggregators impose 150-200% higher delivery fees compared to some restaurants, and charge Rs 2 for packaging than restaurants, even though the packaging is the same. The report said it analysed data from across Swiggy, Zomato and Magic Pin, on price inflation and hidden costs embedded in food aggregator services, including delivery fees, packaging charges, and the marginal utility of premium subscriptions like Zomato Gold. The data compared these with more transparent pricing on restaurant-owned delivery platforms and found significant disparities, according to the report.



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“Where 46% of restaurants don’t charge any delivery fees on their owned channels, most of them indicate it on aggregator platforms,” it said. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Desserts incur a 15% premium on aggregator platforms, while vegetarian items see an 11% price bump compared to non-vegetarian options, the report added. “ Restaurants with more branches tend to charge lower fees, with delivery and packaging fees ranging from Rs 26 to Rs 118 depending on the scale of the restaurant,, while delivery fees for dine-in restaurants are Rs 6.

5 higher on average compared to delivery-first restaurants on aggregator platforms, it added. Chetan Mahajan, founder and CEO of The Mavericks India said in a statement: “As convenience drives more consumers towards food aggregators, the hidden costs of delivery, packaging, and perceived membership benefits can often add up to a significant financial drain over time.”.