Who Is Paying For My Food?
Someone is surely paying for my food. Is it the rider who is delivering? Is it the restaurant who is serving? Is is the aggregator who is putting together menus for me to choose from and taking care of logistics? Is it the VC who is looking at a 20x exit and pumping in huge sums to influence my eating habits? Someone is paying.
It was time one did a case study to decode who is paying and how much. Over last few weeks a deep dive was done and that culminated in series of orders which were definitely financially a disaster in the short run for both Swiggy & the restaurant.
The above Idlis and the following photograph of Set Dosa are from the order which for both put together costed Rs 121/-. Yes for both put together.
Now the issue is who paid for this.
In my opinion both the restaurant and the aggregator took the hit. The restaurant to make sure the boys were busy in the kitchen and the aggregator to make sure commitments to VCs were honored and 100% month over sale multiplier could be shown.
Restaurant recovered the raw materal and packaging cost and may be some amount on account of packaging and skipped the labor and margin part. And for aggregator, aggregator paid the rider who delivered from their pocket. I am not complaining, I did get to see this kind of race to client base when Snapdeal, Flipkart and Amazon decided to take it head on with each other.
In that case also Venture Capitalists were bank rolling the expansion and so are they in this case. I am not sure about how VC is going to get his 20X exit from this one, but I am sure one should not leave the money on the table.
Order max till the fun lasts.
Someone is surely paying for my food. Is it the rider who is delivering? Is it the restaurant who is serving? Is is the aggregator who is putting together menus for me to choose from and taking care of logistics? Is it the VC who is looking at a 20x exit and pumping in huge sums to influence my eating habits? Someone is paying.
It was time one did a case study to decode who is paying and how much. Over last few weeks a deep dive was done and that culminated in series of orders which were definitely financially a disaster in the short run for both Swiggy & the restaurant.
The above Idlis and the following photograph of Set Dosa are from the order which for both put together costed Rs 121/-. Yes for both put together.
Now the issue is who paid for this.
In my opinion both the restaurant and the aggregator took the hit. The restaurant to make sure the boys were busy in the kitchen and the aggregator to make sure commitments to VCs were honored and 100% month over sale multiplier could be shown.
Restaurant recovered the raw materal and packaging cost and may be some amount on account of packaging and skipped the labor and margin part. And for aggregator, aggregator paid the rider who delivered from their pocket. I am not complaining, I did get to see this kind of race to client base when Snapdeal, Flipkart and Amazon decided to take it head on with each other.
In that case also Venture Capitalists were bank rolling the expansion and so are they in this case. I am not sure about how VC is going to get his 20X exit from this one, but I am sure one should not leave the money on the table.
Order max till the fun lasts.
