Corporates are progressively raising their commissions from restaurants in regions where their service is nearing maturity while aggressively pushing partners to advertise on their platform. In addition, the company focuses on monetizing its core food ordering business, restaurateurs, and others with knowledge of the matter.
These price changes always come in when the food delivery industry moves towards consolidation with other corporates. These corporates are making predacious investments and luring small and medium restaurants to advertise in their platform as these corporates want to claim a monopoly in the food delivery market with a significant share.
Unfortunately, and unknowingly restaurateurs are falling prey and sharing a significant chunk of their profits with these corporates.
Corporates have started charging higher commissions from new and even some existing restaurants in places with a high density of restaurants. The ties in with these corporates focus on getting restaurants to fund a more significant chunk of promotions and explore other ( said ) value-added B2B services.
These corporates typically engage restaurants on an 11-month contract and increase commissions when they come up for renewal; earlier, it was usually 12%, and now it has become almost 23%. This change in commission is nothing but business as usual for corporates, but it is a considerable loss for small restaurants.
Some corporates have already started charging restaurants on a pay-per-click model for ads they run on their platform, rather than a fixed fee like earlier; they also made visible moves to improve monetizations in the past few months by increasing its delivery fee up to 200% than what they previously charged.
It’s time for the restaurateurs to decide whether to pay a massive CHUNK of their profits to these corporates and fall prey to their predaceous marketing strategies or MAKE a DIGITAL transformation in their own Business Going ONLINE.
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