Food delivery riders checking phones at a petrol station amidst rising fuel prices.
Food delivery giants Swiggy and Zomato, along with quick commerce platforms, may soon see increased operational costs due to the recent surge in fuel prices. A report by Elara Capital suggests that while the near-term cost pressure is manageable, the hikes could translate into higher charges for consumers.
The rise in fuel expenses directly affects the economics of delivery services, potentially leading gig workers to seek higher payouts. However, the report indicates that the overall impact on the companies’ earnings is expected to remain within control. To mitigate these costs, food delivery firms might adopt a multi-pronged approach, potentially sharing the burden through a combination of increased customer charges, absorbing some of the costs, and adjusting delivery partner economics.