Zomato, a food-delivery platform, recently said it would begin paying small restaurant partners daily, eliminating the current weekly payment structure.
“Our discussions with various restaurant partners highlighted the financial challenges smaller eateries face, using the traditional weekly payout system. This feature is designed to address this critical need for more frequent access to earnings,” Zomato wrote in a blog post on Wednesday.
For now, daily incentives will be accessible to restaurant partners that receive 100 or less orders per month.. “This feature is just one step in our ongoing efforts to support the restaurant industry,” Zomato said.
Small restaurants may now move from weekly to daily payments at no additional expense, in addition to daily transaction settlement based on sales from the preceding three days.
The business stated that conversations with several restaurant partners emphasised the financial issues smaller restaurants confront with weekly payouts. This tool is intended to meet their urgent need for more regular access to revenues, it stated.
“In the competitive world of food delivery, restaurant owners often face countless challenges while growing their businesses and competing with established restaurants. Among the most crucial factors for their success are efficient working capital and a steady cash flow,” the company added.
Zomato collaborates with lakhs of restaurant partners in India. While online meal delivery has expanded the food-services business, restaurants have long sought improved terms from aggregators, such as increased data transparency and cheaper fees.
In the September quarter, Zomato’s gross order value from meal delivery was RS 7,980 crore. During the period, the food platform transacted with an average of 18.4 million clients every month.
