BANGALORE: With the development in the Indian e-commerce business, there are numerous food startups coming upon a day by day basis. The new trend in the online market is of online food delivery which attracts the mass with discounts and offers. The restaurants which partners with such online delivery startups are said to be forced to give more discounts in order to be on top of their business, reports Business Insider.
The tough competition in the market seems to make impacts on these startups which results in them asking their restaurant partners to give more discounts or offers. The restaurants which get more than 50 percent of their business through such online platforms are forced to provide discounts in order to stay notably visible on the food ordering sites and apps.
This situation leads the restaurants to increase their price and then give a cut off which will not affect their profit. A Delhi based restaurant, Mugali Food’s owner stated that, "Once we stop the discounts, we have seen orders falling to less than 25% on some days, Adding a commission charge of about 12% per order and a 10% delivery charge, our cost increases to about 40% of the listed price of a dish,"
But India’s largest food ordering website, Foodpanda India denies such allegation and clarifies that they do not force their restaurant partners for any discounts but both the site and restaurant partner do give offers since it has been their strategy from the beginning of the venture.
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