Rising fuel prices can make food expensive on Swiggy and Zomato. According to the report, the cost per order could increase by up to 44 paise. The delivery partners affected by this are also protesting and demanding more money.
Now ordering food online can be a little more heavy on your pocket. Due to tension in Iran, crude oil crisis and then rising fuel prices, the rates of online food delivery platforms like Swiggy and Zomato may increase in the coming days. According to a report by Elara Capital, a leading financial research firm, costs will increase in the coming days for many food delivery and quick commerce platforms, including Eternal and Swiggy, which is said to be the parent company of Zomato.
How much will the cost increase on one order?
Recently, fuel prices have increased by about Rs 4 per liter due to increase in crude oil prices. Due to this, the prices of petrol and diesel have increased by about 4%. Elara Capital estimates that this 4% increase in fuel prices will impose an additional burden of about 44 paise on every order. However, the report also says that in the current situation, even if the delivery partners demand more money, it is not likely to have any major impact on the companies' revenue at the moment.
How much does delivery cost now?
According to the report, the average cost of delivery per order for companies is as follows:
- Average Rs 35 to 50 on Quick Commerce orders.
- Average Rs 55 to 60 on food delivery orders.
- The total average spend for Eternal is around Rs 45 per order.
- For Swiggy this average is around Rs 55 per order.
About 20% of the total cost of a delivery is spent on fuel. This means that currently around Rs 9 to 10 are being spent on fuel alone on one order. This is the reason why rising fuel prices are putting pressure on companies.
Delivery partners came out in protest
The increase in fuel prices is likely to have a direct impact on the earnings of delivery workers. 'Gig and Platform Service Workers Union' had demanded last week that in view of the rising fuel prices, the per kilometer service rate should be increased immediately. For this, he had also expressed his protest by keeping app-based services closed for 5 hours.
The union has warned that there are around 12 million gig workers in the country who depend on bikes and scooters for their livelihood, and the increase in fuel prices will have a severe impact on them. The union says that if their earnings do not increase commensurate with the cost of fuel and vehicle maintenance, many workers will be forced to leave this job.
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