Zomato Introduces Daily Payouts to Boost Cash Flow for Small Restaurants

Zomato, one of the leading food delivery platforms in India, has announced a new feature called Daily Payouts for its restaurant partners. The feature, which is currently available to restaurants that receive 100 or fewer orders a month, aims to improve the cash flow situation of small eateries that face financial challenges with the current system of weekly payouts.

How Daily Payouts Work

According to Zomato, restaurants that opt for Daily Payouts will receive their payments on a daily basis, based on sales from three days prior. For example, if a restaurant makes Rs 10,000 in sales on Monday, it will receive Rs 10,000 on Thursday. This way, restaurants can have more liquidity and flexibility in managing their expenses and operations.

Zomato said that restaurants won’t have to pay any additional fees for switching from weekly to daily payouts. The company also claimed that it is the first food delivery platform in India to offer such a feature to its partners.

Why Daily Payouts Matter

Zomato said that it decided to introduce Daily Payouts after having discussions with various restaurant partners, especially small and medium-sized ones, who highlighted the financial difficulties they face with the weekly payout system. Many of these restaurants operate on thin margins and have to deal with high fixed costs such as rent, salaries, utilities and raw materials. Having access to daily payments can help them cope with these challenges and improve their cash flow situation.

Zomato also said that Daily Payouts can benefit its delivery partners, who are paid on a per-order basis. By ensuring that restaurants receive their payments faster, Zomato can also pay its delivery partners faster and more reliably.

Zomato’s move comes at a time when the food delivery industry is recovering from the impact of the covid-19 pandemic, which disrupted the operations and revenues of many restaurants and delivery platforms. Zomato said that it has seen a strong growth in its order volumes and revenues in the past few months, and that it is committed to supporting its restaurant and delivery partners in their recovery journey.

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