Homestartup News

    Swiggy seeks higher commissions from restaurants in certain regions, says report

    Swiggy seeks higher commissions from restaurants in certain regions, says report

    Swiggy seeks higher commissions from restaurants in certain regions, says report
    Profile image

    By CNBC-TV18  IST (Updated)

    Mini

    The Bengaluru-based food delivery company has also increased delivery fees it charges the customer, to control its losses on a per delivery level.

    Swiggy is gradually raising its commissions from restaurants in regions where its service is nearing maturity, while aggressively pushing partners to advertise on its platform, as the company shifts focus to monetising its core food ordering business, according to an Economic Times report.
    The Bengaluru-based food delivery company has also increased delivery fees it charges the customer, to control its losses on a per delivery level, the report added.
    The development comes at a time when the food delivery industry is moving towards consolidation with Zomato in talks to buy UberEats, the ET report said.
    A previous report by the newspaper in December had reported that Uber was likely to invest at least $100 million in Zomato in exchange for the latter buying out the firm’s Indian food delivery operations.
    The move also ties in with Swiggy’s focus on getting restaurants to fund a larger chunk of promotions and explore other value-added B2B services, the report added.
    The company typically engages restaurants on a 12- or 18-month contract and has been seen as increasing commissions when these contracts come up for renewal, it added. It has raised its charges to 18-23 percent of the total order value, up from 12-18 percent it used to charge earlier, the ET report said.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng