According to the company, discussions with various restaurant partners highlighted the financial challenges that smaller eateries face under the current weekly payout system.
The payouts will initially be available to restaurant partners who receive 100 or fewer orders per month, according to a blog post by the company.
The Gurugram-based company stated that restaurants will not be charged any additional fees for switching from weekly to daily payouts, despite the fact that daily settlement of transactions would improve cash flow based on sales from three days prior.
Restaurants can choose between daily and weekly payouts in the ‘payout’ section of their Zomato Restaurant Partner app, according to the READ company.
Zomato, a food-delivery platform, has announced that it will begin paying small restaurant partners listed on the platform on a daily basis, replacing the current weekly payment system.
“Our conversations with various restaurant partners highlighted the financial challenges that smaller restaurants face when using the traditional weekly payout system.” “This feature is intended to address the critical need for more frequent access to earnings,” Zomato wrote on Wednesday in a blog post.
For the time being, restaurant partners who receive 100 or fewer orders per month will be eligible for daily payouts. “This feature is just one step in our ongoing efforts to support the restaurant industry,” Zomato said in a statement.
Aside from daily settlement of transactions based on sales from the previous three days, the new feature allows small eateries to switch from weekly to daily payouts at no additional cost.
According to the company, discussions with various restaurant partners highlighted the financial difficulties that smaller eateries face with weekly payouts. This feature is intended to address their critical need for more frequent access to earnings, according to the company.
“In the competitive world of food delivery, restaurant owners frequently face a slew of challenges as they grow their businesses and compete with established restaurants.” “Effective working capital and a consistent cash flow are two of the most important factors for their success,” the company added.
Zomato collaborates with thousands of restaurant partners across India. While online food delivery has expanded the food-services market, restaurants have long sought better terms from aggregators, such as greater data transparency and lower commissions.
Zomato’s gross order value from food delivery was 7,980 crore in the September quarter. During the period, the food platform had 18.4 million average monthly transacting customers.
