Swiggy corners claims of capping commission under 25%

As the standoff between the National Restaurant Association of India(NRAI) and online food aggregators continues, Swiggy is seeking a middle way out by introducing active reforms in its agreements with partnering restaurants.

As per media reports, the Naspers-backed company might introduce an upper limit of 25% on the commission charged from the partner restaurants.

The development comes after representatives of both food tech majors Zomato and Swiggy met officials of NRAI  on August 29 to sort out the friction between the restaurant representing the body and the two.

NRAI has been protesting against the duo over high commission rates, uneven contract terms,  and deep discounts imposed by them on restaurant operators.

Swiggy had promised to submit an official revised proposal within 14 days after the meeting

If true, this move could be beneficial for small restaurants and eateries who don’t process orders in high volumes like huge food chains. 

Moreover, there are talks of introducing a system of charging commission driven by average order value and number of orders under different slab rates.

The food delivery platform is also reportedly working on unbundling of services as requested by the NRAI officials. 

On the contrary to media reports, Swiggy said to Entrackr that the numbers given in the report are speculative.

“Any specific number cap is merely speculation. As in the case of every commercial relationship, commissions are a range depending on various factors. Keeping these factors well defined and transparent, Swiggy has always worked with commissions that are mutually agreed upon and create a win-win with our restaurant partners,” said the company through a statement.

In the meeting on August 29, NRAI had raised concerns regarding Swiggy’s cloud kitchens and its operation of private label eateries. However, Swiggy hasn’t reacted to such concerns so far.

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