Contribution margin

Revenue minus variable costs, per unit or in total. It is what each additional sale contributes toward covering fixed costs and then toward profit.

A meal delivered for ₹250 with ₹160 of variable cost contributes ₹90.

The measure is central to unit economics because it separates the two questions that get confused. Does each transaction make money, and is there enough volume to cover the fixed base? A business with a positive contribution margin and a loss has a scale problem, which growth can solve. A business with a negative contribution margin and a loss has a model problem, which growth makes worse.

Several Indian consumer internet companies spent years demonstrating the second case while describing the first.

Compute it per order before believing any path to profitability.