Swiggy To Standardise 2% Collection Fees, But Not Anytime Soon

Swiggy Ltd. is likely to defer a proposed standardisation of a 2% of collection fees for its merchant partners beyond Feb. 16, according to people aware of the matter.

Swiggy had earlier sent out an email to select restaurant partners, saying that the standardisation will be effective from Feb. 16, and the amount would be deducted from the restaurant payouts. It had also mentioned in the email that partner restaurants could share their views on the matter by Feb. 15.

The standardisation date will likely be deferred beyond Feb. 16 after a pushback from the National Restaurant Association of India, which approached the food aggregator over what it saw as an anti-competitive and unilateral decision, the people told NDTV Profit on the condition of anonymity.

Industry sources said the standardisation exercise is likely to affect up to 5,000 partners or about 10% of the total merchants who are currently not paying a collection fee as part of their commission to the aggregator. The remaining 90% of Swiggy partners will not be impacted by the correction.

NDTV Profit has reached out to Swiggy for confirmation.

Shares of Swiggy were trading 6.9% higher at 364.95 apiece on the National Stock Exchange, compared to a 0.1% gain in the benchmark Nifty.