Swiggy, one of India’s leading food delivery platforms, has launched a new initiative aimed at attracting more restaurant partners to its platform.
The new initiative, known as Swiggy Launchpad, will allow newly onboarded restaurants to waive commissions for their first month on the platform, giving them the chance to test the waters before committing to the food delivery ecosystem.
According to a statement from Swiggy, the initiative is designed to “build a win-win relationship with the restaurant partner ecosystem.”
The company hopes that the 0% commission offer will encourage more restaurants, cloud kitchens, and other food entrepreneurs to try online food delivery and join the platform.
In addition to the commission waiver, newly onboarded restaurants will also receive other benefits such as access to a dedicated growth manager, free advertisements on the app, and an extended delivery radius. These benefits are intended to help new partners drive growth and scale their operations on the Swiggy platform.
Swiggy claims to add nearly 10,000 new restaurants a month to its platform and currently has over 2.5 Lakh restaurant partners enabled on its app.
However, the company has been struggling with mounting losses and heavy cash burn. In FY22, Swiggy’s net losses more than doubled to INR 3,628.9 Cr from INR 1,616.9 Cr in FY21.
The launch of Swiggy Launchpad comes at a time when the company is facing increased competition from rivals such as Zomato. Recent reports suggest that Zomato has been pitching a 2-6% commission hike to several restaurant chains, in a bid to boost its own revenues.
By offering a commission-free first month for newly onboarded restaurants, Swiggy is hoping to attract more partners and drive the growth of its platform. The initiative is part of Swiggy’s ongoing efforts to remain competitive in the fast-evolving food delivery market in India.