Exclusive: Swiggy tweaks service fee policy, non-metro restaurants to pay more in commision
Swiggy has started charging its service fee on the gross order value, which includes GST and packaging charges too, from restaurants outside metro cities as well. This will effectively increase the commission its restaurant partners in such markets pay.
Previously, the service fee — or commission — was levied on the net value for restaurants in smaller cities and towns, while those in large cities were already charged on the gross value.
“Effective 14 August (Wednesday), we shall be charging service fee on the gross value of each order as defined under our merchant terms. This change is being implemented across the platform for all our partners to ensure uniformity in our commission structure. This change will marginally increase the service fee payable to us,” Swiggy said in a letter to its restaurant partners. ET has seen a copy of the letter.
This will impact around 1,000 such restaurants, people aware of the matter said. “The contracts are typically on an individual basis, but this latest change will be rolled out to around 1,000 partners — as of now,” a person aware of the matter said.
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“The recent communication from Swiggy was intended for a small subset of partners, basis discussions, and is fairly routine as different partners have commercial arrangements based on their needs. We have multiple channels available for partners to discuss all issues with us,” a company spokesperson said.
Swiggy typically charges commissions in the range
