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  • High commission charges

    Posted by Kajal on June 7, 2022 at 2:58 pm

    Why do restaurants work with Zomato and Swiggy even when their commission charges are very high?

    Delison replied 1 year, 11 months ago 4 Members · 3 Replies
  • 3 Replies
  • Megha

    Member
    June 7, 2022 at 3:02 pm
    202 Coins

    Hi Megha,

    This is because many people use Swiggy, many cloud kitchens integrate with them for taking up online orders. But when it comes to choosing between own delivery agents and third-party delivery vendors, there are a few factors to be considered. With the evolution of these online delivery apps, many cloud kitchens started integrating their deliveries with these third-party vendors like Swiggy to increase their visibility and order processing. But their order commission charges have been raised to 20-25% plus GST. It takes up much of the gross profit earned by the restaurant/cloud kitchen.

    With the increase in competition for cloud kitchen businesses, the chances that these delivery apps will focus on promoting your cloud kitchen are comparatively less.

    Hence, it is always better to have your delivery agents. You will have total control of the assigned delivery agents and customer order data. With the help of this information, you can enhance your weaker areas by improving the delivery speed and order processing.

    Cheers!

  • Muthu

    Member
    June 7, 2022 at 3:07 pm

    Hi,

    I own a cloud kitchen named fastfoodtruck.in with third-party aggregators like Swiggy putting forth high commission charges for orders, it is becoming difficult for cloud kitchen business owners to survive in the industry. Even after paying a massive amount to these platforms, the chances of getting more visibility are less. But cloud kitchens can find their way out by paying half the amount spent on these food aggregators on creating their own online delivery app and a small amount to marketing.

    With just one-third of the money spent on commissions to Swiggy, the website traffic can be increased exponentially. Many organizations help you create your mobile application for taking online orders. Singlebag, Shopify, WooCommerce, etc

    Instead of relying on these third-party food aggregators for managing orders and delivery, it is better to have full control over your kitchen by having your online ordering application with your brand name.

  • Delison

    Member
    June 7, 2022 at 3:12 pm

    Hello Guyz,

    Just a few seconds back I was discussing the same with my friend and suddenly saw a floating notification about the same topic.

    The delivery for the products ordered through an app Swiggy or zomato is carried out by the delivery agents hired by the team or through a contractor. For a delivery app hiring a delivery contractor on a long-term basis can prove to be better suited. It takes away one segment of the complete operation to the hands of experts which results in efficiency and a good user experience.

    Swiggy is a large food, grocery delivery app that has its own grocery delivery chain so replicating its model can prove to be costly for a new delivery platform. Their order commission charges have been raised to 20-25% plus GST. It takes up much of the gross profit earned by the restaurant/cloud kitchen or grocery store. I came across the delivery system that singlebag provides.

    Try the Singlebag delivery module:

    · Customer orders a pack of goods with or without online payment

    · On successful placing of the order, the merchant is notified about the order.

    · On re-checking the order details the merchant will accept if the inventory has the ordered items or reject if the inventory does not.

    · Once the order is accepted the user is notified and the preparation for order packaging begins

    · On successful packaging of the product, the merchant will update the status in the same panel where they were notified about the order placed.

    · The merchant will update the status to order ready for pickup.

    · Once the status is updated a delivery representative for that region is notified about the order status, ready for pickup.

    · Based on the schedule of the delivery agent they will pick up the order today/tomorrow.

    · On successful pickup, the delivery agent will update the status on their panel as ordered picked up.

    · At the same time, the user is notified that the order has been picked up and will be delivered today.

    · The delivery agents panel will show the navigation to the customer’s delivery destination.

    · Following the navigation, the delivery agent reaches the destination and hands over the package to the customer.

    · If the customer had not paid online the delivery agent will accept the payment by cash/card.

    · On handing over the delivery package, the agent updates the status on the app as delivered.

    I hope the above process explains the complete process of how the Singlebag delivery module is carried out.

    Hope this is helping!

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