Home Food A Customer Compares His Zomato Food Bill With Offline Order, The Results Will Shock You
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A Customer Compares His Zomato Food Bill With Offline Order, The Results Will Shock You

Published: Updated: 3 minutes read

Aggregator apps like Swiggy and Zomato have lately come under fire for having food item prices that are greater than how they have been priced on the real menus of various eateries. This comes after a user expressed his displeasure on a social networking site.

Food aggregator applications like Swiggy and Zomato offer eateries on their app in exchange for a commission. Their main source of income is meal delivery, thus the cost of a person’s bill on these applications is already more than the bill we would’ve received at the restaurant. The dubious aspect of this situation is that the meal products are more expensive than they are in the restaurant.

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In comparing the costs of online versus offline meal orders, a LinkedIn user discovered a startling disparity in pricing.

Performance marketing manager Rahul Kabra published two images showing the same food order with various prices. The order consists of vegetable fried rice, mushroom momo, with veg black pepper sauce, according to the LinkedIn post.

The inclusion of CGST and SGST brought the total cost of offline orders to Rs. 512. The cost for Zomato, on the other hand, came to Rs. 689.90 (after applying an Rs. 75 discount). The LinkedIn user saw that Zomato charged Rs. 178 (34.76%) extra for his orders.

In his LinkedIn post, he wrote,

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“I think there is a need to cap this cost escalation which should be implemented by the government so as to make this a win-win for all stakeholders.”

He added,

“Customer acquisition cost is what all start-ups are struggling with. Retention is the key to enhancing customer lifetime value. Zomato is always on top of my mind due to its constant omni channel advertising! But I must say me being a normal value-driven Indian customer, at the end of the day will always make a price to benefit comparative analysis as an end result of any higher pricing.”

Below is the Linkedin post by Rahul Kabra

His LinkedIn article attracted a lot of attention, and it quickly gained went viral on other social media sites like Facebook and Twitter. Till now, it got more than 10,000 reactions and more than 1300 comments.

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Netizens shared their own experiences about the wide pricing variations across food aggregators

One user named Nikesh Jain shared his own experience on using Swiggy and got strucked with his price escalation on the app. He wrote,

“Swiggy showed price as 120 plus delivery charges. I was going towards the restaurant so I decided to just pick it up from the restaurant. To my surprise, the same thaali was available for 99 Rs. I would have paid around 140 Rs. to Swiggy for the same food which was 40% more. I think the aggregation business needs some serious strategic re-planning. I honestly don’t blame them because they have to make revenue and become profitable but these tactics, I am afraid will only backfire.”

Another user highlighted,

“Zomato does not fix the LP. Restaurants do. And they charge higher prices because Zomato takes 25% commission from them.”

While another said,

“Since Zomato is listed the charges on items have gone up as the same items cost 30-40% more and we let it go just for the sake of saving time. So if your time, cost of going for pick up ( Cost of Gas has gone up substantially) at a restaurant apart from hassles value less than the extra cost you are playing then it makes sense NOT to use these apps.”

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