India's famous e-commerce food-delivery service provider Swiggy has started piloting a direct ordering product, Swiggy Direct, in partnership with select restaurants in Mumbai.
This development comes amid allegations by restaurants that food delivery platforms including Swiggy and Zomato are charging exorbitant commissions.
Sources suggested that this is Swiggy’s attempt at unbundling its services and making amends with restaurant partners, restaurant industry executives.
The company has been in talks with restaurants for over a month and has been experimenting with sharing customer data and rationalising commissions.
Also Read: Now order food from Swiggy and Zomato via Instagram
Moreover, the base customer delivery fee will be INR 30. However, if a new customer ends up on Swiggy using the direct ordering link, it will forgo commission along with flat fees for the next 30 days. The direct link will take the customer to the restaurant's page on Swiggy’s app, which will have a separate flow from the existing interface.
The food delivery platform’s move is to charge a base fee, besides a nominal delivery fee. According to reports, Swiggy will charge a base fee of 2.5 per cent to cover the cost of the direct ordering links and pass on the 2 per cent payment gateway charge to partners.
As part of Swiggy Direct, the company has committed to sharing customer data with the restaurant, which will have to ensure that it would not be released to a third party, reports suggested.
On average, Zomato and Swiggy charge 28-30 per cent commission from restaurants for facilitating an order.
Besides, Zomato’s management stated that if they started unbundling services, it would get costlier for restaurants.
Also Read: Zomato's CEO takes a dig at Swiggy over delivery rules in Mumbai amidst curfew-like restrictions
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