Policy · Commerce & Consumer Brands

Swiggy adds 2% collection fee on restaurant orders

By Startup Enthusiast · 16 December 2023

What they do

Swiggy is an online food delivery platform connecting customers with restaurants

It will charge a 2% collection fee on restaurant orders from 20 December 2023 to cover payment processing costs

The fee is part of Swiggy's push for profitability ahead of its expected IPO in mid-2024

Swiggy will introduce a 2% collection fee on restaurant orders starting 20 December 2023.
The fee covers Swiggy's costs for processing online customer payments.
It applies only to restaurants that do not already have a collection fee.
Swiggy and rival Zomato earlier introduced a Rs 2-3 per order platform fee for customers.
The platform fee was aimed at improving unit economics (profit per order).
Swiggy's food delivery business grew 17% in the first half of 2023.
Swiggy turned profitable for the first time in March 2023.

The collection fee is part of Swiggy's strategy for positive financial growth ahead of its IPO.
Swiggy's IPO is expected between July and September 2024.
Zomato introduced a similar ~1.8% payment gateway fee on all orders several years ago.
Commission plus payment gateway charges are standard in the industry.

Swiggy is an online food delivery platform that connects customers with restaurants.
It makes money by charging restaurants a commission on each order and now a collection fee.
Swiggy also charges customers a platform fee on some orders.
The company operates across India.
Swiggy's gross merchandise value (total value of orders) was $1.43 billion in the first six months of 2023.

Swiggy plans to continue its strategy for positive financial growth ahead of its IPO.
The IPO is expected between July and September 2024.