Swiggy pilots model to tap into direct deliveries
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Swiggy pilots model to tap into direct deliveries
John Sarkar / TNN / Jul 16, 2021, 07:23 IST
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NEW DELHI: In a move that may change the dynamics of the online food delivery model in India, Swiggy is piloting an ‘order direct’ service that will reduce commissions paid to it by its restaurant partners for orders or leads generated by the latter.
The model will also see the food delivery giant share consumer data with restaurants based on confidentiality agreements.
This will not only help the Bengaluru-headquartered company make peace with its restaurant partners that have been vocal about steep commissions charged by food delivery majors such as Zomato and Swiggy but will also give it a toehold into the direct delivery system being adopted by restaurants.
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Swiggy pilots direct ordering product in Mumbai
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Synopsis
The move comes amid allegations by restaurants that food delivery platforms including Swiggy and rival Zomato are charging exorbitant commissions.
ETtech
Illustration: Rahul Awasthi
Swiggy is piloting a direct ordering product, Swiggy Direct, in Mumbai and has entered into agreements with restaurant partners for the programme.
ET has seen a copy of the “partner confirmation” agreement.
The move comes amid
allegations by restaurants that food delivery platforms including Swiggy and rival Zomato are charging exorbitant commissions.
According to the document, Swiggy will charge a base fee of 2.5% to cover the cost of direct ordering link and pass on the 2% payment gateway charge to partners.
Swiggy Pilots Direct Ordering For Restaurants Amidst Backlash From Industry inc42.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from inc42.com Daily Mail and Mail on Sunday newspapers.
Synopsis
Zorawar Kalra, managing director of Massive Restaurants, said demand is heartening and more people are vaccinated now. But, the restrictions on timings are a major concern for the industry.
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About a month after they were allowed to resume dine-in services, restaurateurs say business is still hurting due to continued restrictions on timings and reduced seating capacity, though there is a surge in demand.
They are calling for longer operating hours from this month, besides financial support and relief on statutory dues.
In Mumbai, where restaurants are allowed to operate only till 4 pm and are to be closed on weekends, 30-40% of them have continued staying shut.