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The Incredible Food Tech Discount Hoax

As we all know, nowadays when it comes to food ordering we turn to mobile apps predominantly Foodpanda , the company that is at the heart of the business and has cornered the majority of the market. According to recent data about 13000 orders are received on the platform per day. With a glut of offers and discounts being rammed down the throat of every person who has downloaded the app in the form of frequent notifications, new users are flocking on the platform like never before.

However, as per findings the startup giant along with its beleaguered brethren are pushing the cost of discounts on to the restaurants to minimize cash burn. The restaurants in turn are marking up the prices of their dishes by at least 20% margin. They are then displaying a discount on the final bill so actually in effect its all a fugazi or illusion. The entire food tech industry is waking up to the realization that just adding e or tech to food doesn’t make for scalable business model. The margins are thin and the logistics and delivery personnel involved require constant liquid capital. In its desire to scale faster, the company is unabashedly and amorally turning a blind eye to the fact that their sellers are hiking up the base prices.

Lets take a case in fact, we visited an outlet which was a subscriber to Foodpanda and compared their prices,

 

FoodPanda App    Menu_Bawarchi_wakad_pune

You don’t need to be a mathematician to calculate the margins on several of the items which is roughly between 20-30%. I guess they are taking inspiration from the machinations of the e-commerce sites who during their growth stages were plagued with marking up of prices of goods. The general public is buying into the hoopla surrounding the company and ordering online in record numbers. However, every successful business needs to have some ethics surrounding their growth. In succumbing to such new lows, we can actually see the fraudulent DNA of the organization.

This article has been written as an opinionated piece and does not support the views of the estFacts Team.

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