After Zomato, Swiggy Announces 2% Collection Fee | Check Details
Swiggy & Zomato process more than 3M orders per day. Following the footsteps of its competitor Zomato, Swiggy owned by Bundl Technologies Limited is set to introduce a 2% collection fee for restaurants
Swiggy & Zomato, the two dominating food aggregators in India process more than 3M orders per day. Following the footsteps of its competitor Zomato, Swiggy owned by Bundl Technologies Limited is set to introduce a 2% collection fee for restaurants. This move by Swiggy has given birth to a spark among the restaurant community. But wait, this might not just be between Swiggy and its restaurant partners because in the end as customers it might be you who may have to bear the cost eventually.
Swiggy on its 2% collection fee wrote to its restaurant partners in an email, “This fee is for facilitating seamless customer payments on the Swiggy platform. Please note that this amount will be deducted from your payouts”
A collection fee is a small fee charged to facilitate a particular service. In this case, Swiggy’s collection fee of 2% is a fee charged by the platform to facilitate an online payment platform for the restaurant partners. An example of this collection fee is also what other payment gateways charge.
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Swiggy collection fee is set to be introduced from 20th December and the 2% charges will be deducted from the payout said Swiggy in its email. Zomato also implemented similar payment gateway charges a few years back.
As per a recent article published by NRAI or the National Restaurant Association of India, it seems that more and more restaurant partners are considering ONDC to reduce their dependency on Swiggy and Zomato.
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The report suggests that restaurant partners in total pay approx 40% to the current duopolies, Swiggy and Zomato in the form of commission, discounts, fees, delivery, discovery, etc.
Now, the addition of Swiggy's collection fee of 2% will also be adding to the existing cost the restaurant partners and eventually the customer have to bear.
“A standard industry-wide practice” to facilitate smooth payments from customers on the platform, adding that restaurants that do not currently have a collection fee are being charged this amount” said a Swiggy Insider.
Swiggy also recently launched a new PocketHero initiative which offers free delivery, up to 60% OFF, cashback and more.
Read about it here:
To save extra on your Swiggy orders, grab our Swiggy discounts & deals!
Thanks to @best_deal_hunter for first sharing this news with us here:
1. What is the Swiggy Collection Fee?
Swiggy has announced a 2% collection fee applicable from 20th December 2023 to its restaurant partners
2. Swiggy joining fees for restaurants?
Typically, Swiggy doesn’t have a joining feel for restaurants to register on its platforms. However, partners need to pay a commission fee + GST and now a 2% collection fee
3. What does Swiggy charge per order to restaurants?
As far as we know Swiggy generally charges between 15% to 22% to its restaurants + GST charges. This is excluding delivery fee and platform fee.
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