The sultan of food-tech, Swiggy, is once again driving the market mad as the company is planning to serve its starved investors with its long-awaited IPO. The latest move? A new service fee policy that is as hot as sauce is coming; it is making the mouths of non-metro restaurant partners bitter.
From August 14 onwards, to cover the surge in demand Swiggy has started included taxes and packaging charges in their commission claw. This translates to a hotter plate to restaurants in Tier 2 & 3 cities and beyond, who obviously increase their share of dough to the food delivery behemoth. Although Swiggy maintains this is to increase standardisation, many have defamed them saying this is a cash cow move to help bolster IPO.
It especially concerns the restaurants directly influenced by this change and with the number of 1000 organizations the industry global and local is awaiting the results since this new policy may dramatically rearrange the concept of food delivery. It remains to be seen whether Swiggy continues its charges with such vigour as this strategy clearly threatens some of its partners: is this the way to win the war to gain market share or is this a path to ruin? Only time will tell.
