If you have used online food delivery app Swiggy, chances are that you have been prompted to buy their paid subscription plan called Swiggy Super. However, if you are a frequent user and also a subscriber of the Super program, you likely would have noticed a spike in the rates of the plan from earlier Rs 129 for three months to Rs 199 a month for renewing it. While Swiggy has increased the rates of subscription plans, you could be the one paying for subsidising other users. The reason: Swiggy uses differential pricing based on your usage pattern.
What this essentially means is that while Swiggy might be prompting you to get Super for Rs 199 a month, a friend of yours could be getting the same offer for Re 1 a month, depending on whether it’s a new customer or a regular user. The same was confirmed by Swiggy when Financial Express Online reached out for comments.
“For those renewing their subscription or for new users, the base pricing remains the same, however, certain customers may see different pricing due to trials or other promotional offers. For instance, a new user may receive a one-time special price or as part of an external partnership (e.g SUPER membership at Re 1). Similarly, users renewing their subscription might get a special price keeping in mind factors like frequency or size of orders,” Swiggy responded to an email query by Financial Express Online. More orders here mean more price of Super.
Upon being asked if the users are notified about the price increase and disparity, Swiggy said that “users who are renewing their subscriptions are clearly communicated how much they were able to save with their membership… They are notified about the standard pricing available to them along with the discounts offered if any”.
Applications such as Zomato, Swiggy and UberEats have disrupted the online food ordering business. The platforms are backed by foreign investors such as Naspers (Swiggy), Info Edge and Sequoia (Zomato), among others, and have been reporting massive losses due to cash burn. The online aggregators have also been facing the heat of restaurant partners for various issues such as massive discounts offered by the aggregators without consultation of the restaurant and increasing rentals.