After heavily subsidising restaurants for most of last year to win their loyalty, food delivery start-ups Swiggy, TinyOwl and Foodpanda have steeply raised their commissions.
It’s either that or scramble for funds. The startups can afford to do that now, having got a large number of restaurants addicted to selling to a huge base of consumers through them. Swiggy and TinyOwl are in the market to raise funds and need to convince investors that they have changed tack and are focused on building sustainable businesses.
The start-ups also have mostly stopped offering discounts to consumers — implementing corrective measures more aggressively than e-commerce giants that are still heavily reliant on deep price cuts to retain customers.