Swiggy to demand higher commissions from Restaurants,Hike in Delivery Charges :Sources

Swiggy to demand higher commissions from Restaurants,Hike in Delivery Charges :Sources

The Economic Times reported that Swiggy has started incrementally raising commission in mature regions increasing delivery charges for Customers and Pushing partners to advertise on the platform in a bid to maintain its position as the food delivery industry  has begun to consolidate.

The Bengaluru-based startup increased commission to 18-23 percent of order value from the earlier 12-18 percent fee. This is brought up during the contract renewal; the contract period is 11 months, sources told the paper.

The paper quoted a Swiggy partner as saying that the commission rates differ based on the density of restaurants and on how recently the company’s entered a region.

According to sources the delivery fee for customers has been hiked in select regions to Rs 35 for orders below Rs 98 and to Rs 25 for orders above Rs 98. This is expected to buffer loss incurred per delivery.