Swiggy called the zero-commission food delivery model a "marketing gimmick." This directly contradicts rivals like Rapido's Ownly, who launched with zero-commission this year. The debate boils down to who ultimately bears the cost: restaurants, consumers, or delivery partners.
How We Got Here
Swiggy launched Toing in September 2023, targeting budget-conscious customers with meals starting at Rs 49. This follows their deliberate exit from the micro-kitchen model 4-5 months ago, citing high costs and uncertain economics.
The Numbers
- Swiggy's food marketplace CEO, Rohit Kapoor, stated that "some charges" are inevitable on any platform.
- Swiggy typically charges restaurants 18-30% commission, varying by agreement, location, and ad spend.
- Toing aims to unlock new users, as 70% of current Swiggy users transact less than once a month due to affordability barriers.
- Swiggy management claimed they do not charge restaurant partners for delivery, unlike unnamed rival platforms.
- Toing's monetisation strategy relies on flat consumer fees, higher ad placements, and lower restaurant take rates.
What Happens Next
🇮🇳 Why This Matters for India
For students and early jobbers in Tier 2 cities like Indore and Nagpur, Toing's Rs 49 meals offer a crucial entry point into regular food delivery.
The Take
Swiggy's "gimmick" comment is really a subtle nod to the inevitable — scale makes zero-commission unsustainable without other revenue levers. Toing appears to be a land grab for the 70% of users they currently miss, setting the stage for eventual upselling.
Source:
MediaNama ↗