Swiggy, one of India’s largest online food delivery platforms, has recently launched a new initiative called Swiggy Launchpad. The aim of this initiative is to encourage new restaurants to join the platform by offering them a commission-free first month. This move is part of Swiggy’s efforts to boost its restaurant partner base and expand its reach across the country.
Swiggy Launchpad offers several benefits to new restaurant partners. In addition to the commission waiver, they can get a dedicated growth manager to help them understand the platform and grow their business, free ads on the app to promote their brand, an extended delivery radius to reach more customers, apps to manage their business performance and create high-quality menus, as well as data and insights through business intelligence dashboards. Swiggy estimates that new restaurant partners can save up to INR 20,000 through commissions and other benefits.
In an official statement, Swiggy said,“Over the years, online food delivery has emerged as a credible channel for new restaurants to accelerate consumer traction and growth. Yet, many brands are unclear about where and how to begin. The 0% commission will work as a great tester for these new restaurants, while also saving them some capital.”
Swiggy has been facing challenges in recent times. In January 2022, the company sold its cloud kitchens firm Swiggy Access and laid off around 380 staff in an effort to rationalize costs. Swiggy’s CEO Sriharsha Majety had previously stated in an email to employees that the growth rate for food delivery had slowed down versus the company’s projections, and it needed to revisit its overall indirect costs.
Swiggy’s financial performance has been mixed. According to data from Tofler, Swiggy reported a net loss of INR 3,628.9 crore for FY22, which was higher than its net loss of INR 3,342.3 crore in the previous year. However, its revenue from operations increased by 125 percent to INR 5,704.9 crore in FY22, which was a significant improvement from the previous year.
Swiggy is one of the leading players in India’s online food delivery market, which has seen rapid growth in recent years. The Covid-19 pandemic has further accelerated the adoption of online food delivery platforms, as people increasingly turned to home delivery services to avoid going out. With its latest initiative, Swiggy hopes to attract more restaurant partners and expand its reach across the country.
