BRANDS | Swiggy pilots model to tap into direct deliveries

The model will also see the food delivery giant share consumer data with restaurants based on confidentiality agreements.

In a move that may change the dynamics of the online food delivery model in India, Swiggy is piloting an ‘order direct’ service that will reduce commissions paid to it by its restaurant partners for orders or leads generated by the latter. The model will also see the food delivery giant share consumer data with restaurants based on confidentiality agreements.

This will not only help the Bengaluru-headquartered company make peace with its restaurant partners that have been vocal about steep commissions charged by food delivery majors such as Zomato and Swiggy but will also give it a toehold into the direct delivery system being adopted by restaurants.

As part of Swiggy’s pilot project, restaurants that generate leads on their own can ask Swiggy to fulfill the orders, including online payments, tracking, and delivery and as part of the deal, Swiggy will forgo a part of its commission. “Currently restaurants that have adopted the direct delivery model have to depend on different third-party service providers such as one for delivery and another for payments. Swiggy, however, provides a one-stop-shop,” said a senior industry executive.

Swiggy's spokesperson was not available for comment. Restaurants TOI spoke to welcomed the move. “It’s the first time a food delivery company is talking about unbundling services,” Riyaz Amlani, CEO and MD at Impresario Handmade Restaurants that operates restaurant chains such as Social and Smokehouse Deli, told TOI. “While it’s still early days, it’s a start nonetheless.”

The development comes against the backdrop of the National Restaurant Association of India filing complaints with Competition Commission of India against alleged anticompetitive practices by such aggregators. Sources, however, said Swiggy discussed its new mode