Online food delivery company Swiggy is going to bring its IPO soon. It is being told that the company’s IPO will be around Rs 11,300 crore. Meanwhile, a question has started arising that what is Swiggy’s business model? In what ways does the company earn money? (How Swiggy Earns Money) Let’s know.
1- Delivery charge
A delivery charge is taken from the customers when the order is delivered by Swiggy. If the order is big, the company also waives the delivery charge, but delivery charge is definitely charged on small orders. This is an important way of earning for the company.
2- Earning from advertisements
If you open the Swiggy app, you will also see all the advertisements in it. Swiggy gets paid by other companies for these advertisements, which work to increase the revenue.
3- Charge for restaurant listing
All the listed restaurants you see on Swiggy have to pay a charge to the company for listing. This charge is around Rs 1000. This is a one-time fee. The company earns from this as well.
4- Commission from restaurants
The company gets a commission of 15-30 percent from any restaurant or vendor listed on Swiggy. This commission is based on the sales of that restaurant through Swiggy. That is, the company earns the most from this method.
5- Platform fee
Like all other platforms, you have to pay a platform fee on Swiggy as well. Usually this fee is Rs 7. However, in this festive season, the company has increased this fee to Rs 10. Please note that it is charged per order. That is, whether the order is for Rs 100 or Rs 1000 or even bigger, the platform fee will be Rs 10 per order.
6- Instamart is also a source of income
Swiggy’s quick commerce platform Instamart is also a big source of income for the company. Just like Zomato has quick commerce company BlinkIt, Swiggy also has Instamart. From here the company earns money by charging various charges like handling fees, platform fees, delivery fees.
7- Swiggy also owns the Dineout app
Swiggy bought Times Internet’s app Dineout in May 2022 for around $120 million. Through this app, you can see all the restaurants and book seats there. Also, you can get some discount and make payment from this app. This app charges some amount to get all the restaurants listed on its platform. You also have to pay a small charge while booking a table in a restaurant through this app.
8- Swiggy One Membership
A membership plan is also offered by Swiggy, which is called Swiggy One. After taking it, you get a huge benefit in delivery fees. The company also earns by selling this membership.
9- Earning from credit card company
Swiggy also offers a special kind of credit card in collaboration with some bank. Under this, there is no annual charge on your credit card, no joining fee and no hidden charge. You get many benefits by shopping with Swiggy. Under Swiggy’s partnership with the bank issuing this credit card, it gets some commission per transaction.
10- Swiggy Genie
A service called Genie is also provided by Swiggy. Under this, the company can deliver Diwali gifts right now. Also, through this you can avail laundry service, buy some small electronic items or even order medicines.
11- Earning by running campaigns
Some special campaigns are run from time to time on Swiggy. To participate in this, you have to pay some extra fee.
12- By increasing the visibility of the restaurant
Generally, the restaurants listed on Swiggy are visible only within a radius of 4-7 kilometers. On the other hand, if you want to increase your visibility more than this, then the company charges some premium for that. This premium is also a source of income for the company.
