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    Restaurants are looking beyond Swiggy, Zomato for food delivery

    Synopsis

    Premium restaurants—from Masala Library to Mamagoto—are tying up with hyperlocal delivery startups, such as Dunzo and Shadowfax, for food delivery at half the commission charged by Swiggy and Zomato.

    ETtech
    The direct-to-consumer channels allow restaurants to customise guest experiences and receive feedback directly from the customer.
    New Delhi: Premium restaurants such as Social, Big Chill and Mamagoto among dozens of others have begun escalating direct-to-consumer food delivery as an alternate channel for some of their brands, circumventing Zomato and Swiggy for some percentage of their deliveries.

    The brands are tying up with Dunzo, Delhivery and Shadowfax, among others, at less than half the cost of what Zomato or Swiggy charge, with savings on commission costs paid to aggregators being passed on to consumers as discounts.

    “The savings on commission costs are passed on to consumers; this also enables getting access to customer data and direct consumer feedback. It is necessary for businesses to start taking some control of their own digital landscape,” confirmed Anurag Katriar, chief executive officer of Degustibus Hospitality which operates Indigo Deli and Tote.

    Katriar, also president of the National Restaurant Association of India that represents over five lakh restaurants and bars in India, said the trend towards own deliveries is gaining traction and set to escalate.

    What started as experimenting during the pandemic is now being explored by almost all brands, industry executives said. “We are exploring the direct-to-consumer space for some of our brands and overall, the trend is set to escalate for various reasons, even as associations with the aggregators continue for larger reach,” said Zorawar Kalra, managing director at Massive Restaurants, which operates Farzi Cafe, Masala Library, Swan among others.

    Industry executives said D2C channels also allow restaurants to customise guest experiences and access to direct customer feedback instead of routing it through third-party aggregators.

    “Direct-to-consumer (D2C) is an alternate channel which many of us have associated with now. While the much larger reach comes from Swiggy and Zomato which we continue with, for some of our brands this is an option we have begun since it gives us access to consumer data and saves on hefty commissions,” said Kabir Suri, MD of Azure Hospitality, which operates Mamagoto, Dhaba, Sly Granny and Foxtrot.

    The move coincides with dine-ins increasing with declining covid cases, and a year after restaurants and aggregators were engaged in a pitched battle over discounts and data masking. While the restaurants get higher reach and visibility through marketplace-based platforms, these platforms prevent the restaurant from direct consumer feedback and mask consumer data.
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    4 Comments on this Story

    Prabhu Srivastava3 days ago
    Enjoy the readymade white label with hyper local delivery integrated platform from getpy.biz. Get your branded android and ios app and PWA based ordeing website in just 30 minutes with lots of exciting readymade features like payment, hyper local delivery, customer engagement, advance analytics and social media.
    Imran4 days ago
    Yes food aggregators manipulate order flow and we need other alternatives than zomato swiggy to survive and grow.
    Deep4 days ago
    Food aggregators manipulates order flow.
    They have disbalanced the ecosystem.
    D2C is will balance it.
    The Economic Times