Swiggy serves zero-commission initiative to grow restaurant base | The Financial Express

Swiggy serves zero-commission initiative to grow restaurant base

Food delivery platform Swiggy has launched a new initiative, Swiggy Launchpad, where new restaurant partners will not have to pay a commission for the first month.

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Restaurant partners who are new to Swiggy will be able to save up to Rs 20,000 through commissions and other benefits. (IE)

Food delivery platform Swiggy has launched a new initiative, Swiggy Launchpad, where new restaurant partners will not have to pay a commission for the first month. The initiative aims at encouraging new restaurants to recognise online delivery as an incremental channel to kick-start their growth.

Restaurant partners who are new to Swiggy will be able to save up to Rs 20,000 through commissions and other benefits. The 0% commission will work as a great tester for new restaurants, which can also save some capital.

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Swiggy Launchpad seeks to build a win-win relationship with the restaurant partner ecosystem. This is applicable only for brands that are new to Swiggy and not for new outlets and brands of existing partners, the company said.

“We are consistently looking at avenues to encourage new food entrepreneurs to experience online food delivery,” said Rohit Kapoor, CEO, food marketplace, Swiggy. “With 0% commissions for the first one month of their operations, we hope more restaurants, cloud kitchens and other food entrepreneurs feel confident about online food delivery and take the plunge. We look forward to welcoming many new partners.”

Swiggy typically on-boards about 10,000 restaurants every month on an average. The Swiggy Launchpad will be applicable to all partners that are new to the Swiggy platform.

New restaurant partners can avail of several benefits, enabling them to control operational costs and drive growth as they get oriented to online food delivery. This not only includes the commission waiver, but also supports in the form of a dedicated growth manager, free advertisements on Swiggy app, extended delivery radius, apps to manage business performance and create high-quality menus, as well as data and insights through business intelligence dashboards.

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The new development comes at a time when Swiggy has been locked in a long-drawn competition with BSE-listed Zomato. Swiggy has also emerged as a tough competition to Zomato as a private company, especially after its $120-million acquisition of restaurant discovery and reservation platform Dineout in May 2022.

Until this acquisition, both Swiggy and Zomato competed only on two turfs ― food and grocery delivery. With Dineout, it directly stepped into Zomato’s restaurant discovery market, which also has a few other competitors such as Nearbuy and Eazydiner.

In the grocery delivery vertical, Swiggy’s Instamart service had exclusively secured funding worth $700 million, led by investment firm Invesco, in January 2022. Following this funding, Zomato also acquired grocery delivery app Blinkit for $570 million.

In a recent financial report by Prosus, which is Swiggy’s key investor, the foodtech unicorn was estimated to have hit a gross merchandise value (GMV) of $1.3 billion in its core food delivery business during the first six months of FY23. This was a 40% jump compared to the same period in FY22. During the same period, Instamart also saw its GMV reach $257 million, according to Prosus’ estimates.

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First published on: 18-03-2023 at 03:15 IST
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