With this, restaurant partners can save up to Rs 20,000 through commissions and other benefits. It will give them an opportunity to invest back into their business to achieve further growth. The company is looking to build a win-win relationship with restaurant partners and the delivery business ecosystem through the Swiggy Launchpad initiative, Swiggy added.
Swiggy has enabled an average of over 2.5 lakh restaurant partners on its platform. And typically about 10,000 restaurants are included each month. This offer is applicable to all participants on the Swiggy platform.
A few days ago, Swiggy had announced the integration of Dynoout offers on its platform for all its users. It was also informed that through this facility it will be possible to get discounts from more than 18,000 restaurants in 24 cities.
Meanwhile, Zomato plans to increase commission from partner restaurants. Reportedly, 50-60% of restaurant partners are asking for a 2-5% increase. Zomato and Swiggy together control 95 percent of the food delivery business in India. Both these food delivery companies charge a commission rate from the restaurant partners on their platform. But this charge is different for each restaurant partner. In short, there is a difference of 4-6% in commission rates between these two firms.
The commission rate hike was Zomato’s move to bring parity with the commissions charged by Swiggy. But now Swiggy is making a new change by waiving commission for the first month for new restaurant partners. Swiggy has started the new venture as part of its competition with Zomato. While delivering food, those paying 15% commission on Swiggy will have to pay 15% on Zomato plus an additional payment gateway charge of 1.84%.
Zomato had also warned that many restaurants would be delisted if they failed to comply with the revised commission. Swiggy’s new move is against this. Recently, Swiggy announced that it will exit the cloud kitchen infrastructure business. Zomato left this space in early 2020.
Also Read : Reliance brings back ‘Kamba Cola’ by reviving old memories
The new announcement comes at a time when Swiggy is struggling with mounting losses and heavy cash outlays. The foodtech company’s net loss widened to Rs 3,628.9 crore in 2021-22 from Rs 1,616.9 crore in FY21. Swiggy was trying to take away Zomato’s market share by offering heavy discounts. However, it must be considered that the plans presented against Zomato also did not help Swiggy.
Read Latest Business News and Malayalam News
