Zomato enables restaurants to draw daily payouts to boost working capital
Zomato’s new feature will allow restaurants to switch between weekly and daily payment cycles through the restaurant payments app.
Food delivery platform has rolled out a new feature ‘Daily payouts’ to enable restaurant partners to draw daily payments instead of weekly payments. This is aimed at boosting the working capital requirements of eateries and ensuring steady cash flow.
Restaurants often face challenges regarding cash flow and working capital while using the traditional weekly payout system. Zomato’s new feature is designed to address the critical need for more frequent access to earnings.
Restaurants can now switch between daily and weekly payment systems through the restaurant partners app at no additional cost. The feature will facilitate daily settlement of transactions based on sales from three days prior, the Gurugram-based listed company said in a blog on Wednesday.
The option is currently available for restaurant partners who receive 100 or fewer orders a month, added.
“... This feature is just one step in our ongoing efforts to support the restaurant industry. We remain committed to exploring innovative ways to empower restaurant partners to succeed in a highly competitive market,” the firm noted.
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In October last year, Zomato ventured into logistics with the launch of Zomato Xtreme to allow merchants to send packages starting at Rs 35. It aims to take on large logistics players such as Shadowfax, Dunzo, and Borzo.
Zomato has had a bittersweet relationship with some restaurants after the National Restaurants Association of India (NRAI)—the industry body for restaurants—called out anti-competitive practices by the food delivery platform several times over the last few years.
Rival Swiggy, too, has seen itself in a similar situation. In October 2022, NRAI urged its five lakh members to start logging out of Swiggy’s Dineout app. Later that month, YourStory reported that several A-list restaurants, including Cafe Delhi Heights, Smoke House Deli, and Mamagoto, opted out of Dineout.
Edited by Kanishk Singh