Swiggy to forgo commission from new restaurants for one month.
Under its new programme called Swiggy Launchpad, the online food and grocery delivery service Swiggy announced it would forgo revenue from new restaurants for a month.
The decision was made in response to rival Zomato approaching several restaurant chains and asking for a 2-6% rise in commissions.
By this strategy, restaurant partners could possibly save up to Rs.20,000, according to Swiggy. Swiggy’s marketplace network has up to a quarter million restaurant partners, and the business claims it adds roughly 10,000 new restaurants each month.
Additionally, according to the Bengaluru-based company, the offer includes assistance in the form of a dedicated growth manager, free advertisements on the Swiggy app, an expanded delivery radius, apps to manage business performance and online menus, as well as data and insights through business intelligence dashboards for these eateries.
The primary source of income for companies offering online food delivery is commission from eateries.
Rohit Kapoor, CEO of Swiggy’s food marketplace, stated that his company is constantly looking for ways to encourage aspiring food businesses to try out online food delivery. “We hope more restaurants, cloud kitchens, and other food entrepreneurs feel confident about online food delivery and take the jump,” the company said in a statement.
The SoftBank-backed company’s decision to reduce expenses across the board in order to increase profitability in the face of sluggish sector growth for food delivery and a challenging funding climate makes the move important. In spite of offering greater discounts, Swiggy underperformed Zomato in market share during the first half of 2022, according to a research note from investment banking firm Jefferies.
Swiggy Access, which offered cloud kitchen rentals under the name Kitchens@, has been sold by Swiggy to Loyal Hospitality. The company announced on January 20 that it would discontinue its meat delivery service and fire more than 300 employees.
Also, the business has tightened its policy on password sharing for Swiggy One customers, which provides free delivery across Instamart and DineOut.
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