Swiggy has introduced a new collection fee of 2% on all food delivery orders. The new charge will be applicable from December 20, 2023. The food delivery platform has notified all of its restaurants of the same.
Swiggy says that these collection fees are designed to ensure smooth payments from customers on the app. However, restaurants have expressed their displeasure over the new fees as they already pay a commission of up to 20% on each order.
Swiggy Levies An Additional Collection Fee
Swiggy has sent an email to its partner restaurants informing them of a new standardized collection fee of 2%. This additional cost will have to be borne by the restaurant, instead of the customer.
Swiggy offers multiple payment options to its customers which include online options such as credit and debit cards, UPI, wallets, etc. along with COD. The money collected by Swiggy is settled with the restaurant on a weekly basis. As per Swiggy’s statement, it looks like the platform now wants to charge restaurants for facilitating this payment collection and settlement service.
As of today, the new collection fee has already been implemented. However, restaurants are not happy with this move as they cite this as an increased commission by the food delivery platform. Restaurants have further said that this sudden change has been brought in amidst the holiday season of December-end, where the volume of orders is very high.
Restaurants are more likely to increase the prices of their food items, to deal with the additional collection fee. Hence, food delivery may get slightly expensive for Swiggy users.
To recall, Swiggy has also started charging a fixed platform fee of Rs 3 on each order. The company has been actively exploring ways to generate additional revenue. Earlier this year, Swiggy reported that it had turned profitable for the first time since its inception 9 years ago.
Swiggy also introduced its co-branded credit card with HDFC Bank to attract more loyal users to its platform. The card offers 10% cashback on each order on Swiggy food delivery, Instamart, and dineout. The idea behind the card is to make more people prefer Swiggy as their primary food delivery option, rather than turning to their competitors like Zomato or EatSure.
