Restaurants are opting out of food tech startups like Swiggy
Post 70th Independence day special! Foodtech startups are losing their onboarded restaurants. Foodtech startups customer may not get food deliveries from their favourite restaurant.
Here are three reasons for restaurants to backout
High commissions – Foodtech startups initially took a single digital commission but now they are charging 25%.
Food delivery time – Restaurants complained many times that the delivery people come 1 – 2 hours after the order is placed. The restaurants have to re-cook the food so that their rating in the app does not decrease.
Customer experience – The delivery boys are not well dressed that causes a direct effect on the restaurant presentation.
Top three reasons for Foodtech startups to justify the above allegations
High commissions – Investor funds are drying up because of marketing the food app. Now its time for the startups to increase their commission so that their business model shows profitability on the balance sheet.
Food delivery time – During peak hours, number of orders might exceed the delivery people available. Causing delivery executive to arrive later than expected. This problem does not happen always.
Customer experience – The experience a customer expects at the restaurant cannot be replicated through a delivery person.
The biggest expense in every industry these days is the logistics part. Foodtech startups must be incurring huge costs due to salaried delivery people. Startups should look into outsourcing this service and moving to a market place model.
Recently Tiny Owl ran out of business and was acquired by Roadrunnr.