Food delivery major, Zomato said that on average, 5 per cent of daily orders on Zomato have a tip included in them and the average tip amount given by customers for one order is ₹27.
“When we started the tipping feature on Zomato online ordering application back in 2019, we have certainly come a long way. For one, now, our delivery partners are notified immediately of a customer’s generosity. While we were rolling out these changes and diving deep into the world of tips in India, we learned that, as a country, we’re quite new to this habit,” Mohit Sardana, COO, Zomato, in a company blog.
In October 2022, 8652 delivery partners received tips worth more than ₹1,000, according to Zomato. Also on Diwali, the average number of orders, including a tip increased to 6.3 per cent from the usual 5 per cent. The company added that Zomato absorbs all payment gateway charges, including administrative and convenience fees, to ensure 100 per cent of the tip amount is transferred to delivery partners.
In terms of timeline, these tips are transferred to delivery partners on an ongoing basis and are not part of their weekly payouts. “We transfer tips as and when they are received i.e., on an ongoing basis. Fun fact: of all the tips we get, we transfer ~80 per cent of them to delivery partners’ bank accounts within 60 minutes of receiving them,” the company added.
Overall, 92 per cent of the tips are said to be credited to delivery partners’ accounts within 24 hours of delivery being completed. Zomato said they are working with banking partners to ensure it hits 100 per cent here, at the earliest. Food delivery major Zomato’s net loss narrowed to ₹250.8 crore in Q2, compared to ₹434.9 crore reported in the same quarter last year.
The company’s revenue from operations jumped 62.2 per cent to ₹1,661 crores in Q2 compared to ₹1,024 crores in Q2 last year. The acquisition of Blinkit (quick commerce) closed on August 10, 2022. Hence, this quarter’s results include about 50 days of Blinkit financials consolidated into Zomato’s overall financials.