Food delivery platform Swiggy has been raising commissions for restaurant partners in some regions where its service is nearing maturity, according to an Economic Times report citing sources, on Friday. The company has also increased its delivery fees to control its losses on a per-delivery level, the report said.
“This is nothing but business as usual in a marketplace such as ours,” Swiggy said in a response to ET, while denying any unusual increase in commissions for any specific restaurant partner base, the report said.
The development comes at a time when the company's bottom-line is suffering, given the high cash burn in the sector. Bundl Technologies, the parent holding that owns Swiggy, reported consolidated losses that ballooned to Rs 2,364 crore during financial year 2018-2019.
Swiggy is also looking to get restaurants to fund a larger chunk of promotions as it is pushing the partners to advertise on its platform.
India’s food delivery market is dominated by Bengaluru-based Swiggy and Gurugram-based Zomato. Rival Zomato has also been burning cash -- in FY19, it reported a surge in losses to Rs 1,001 crore from Rs 106 crore in the previous year.
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