Swiggy extends service fee on gross order value from non-metro restaurants: Report

Swiggy, founded in 2014, has a valuation of $12.7 billion as on April 10, 2024.

Food-tech giant Swiggy will charge the service fee on the gross order value from non-metro restaurants. The extension of service fee, including Goods and Services Tax (GST) and packaging charges, will increase the commission its restaurants pay, according to the report on the Economic Times.

Restaurants in larger cities already paid a service fee, or commission, on the gross value of their establishments, while smaller towns and cities paid theirs on the net value.

However, Swiggy said "there are no broad changes to Swiggy's commission structure for restaurant partners. Partners will continue to operate under the existing terms of their agreements," ET quoted the spokesperson.

The food and grocery delivery major has already filed for an Initial Public Offering (IPO) with the market regulator, Sebi.

Swiggy, founded in 2014, has a valuation of $12.7 billion as on April 10, 2024. Its annual revenue stood at $1.09 billion as on March 31, 2023. The company has more than 4,700 employees, according to Tracxn, a global startup data platform.