Swiggy Pricing Strategy Case Study: Increase Sales and Profits

Swiggy, the popular food delivery platform, has been making waves in the market with its innovative pricing strategy. In this blog post, we will delve into Swiggy’s pricing model and analyze its impact on the various stakeholders involved. Let’s take a closer look at how Swiggy is increasing sales and profits through its pricing strategy.

Understanding Swiggy’s Revenue Model

Swiggy’s revenue primarily comes from two sources: delivery fees paid by customers and commissions paid by restaurants. The delivery fees are charged based on the order value, while the commission is a percentage of the order value paid by the restaurants. Swiggy also pays a share of the delivery fees to its delivery partners, along with other allowances and tips.

Customer Perceptions of Swiggy’s Pricing

In 2022, Swiggy customers have expressed mixed feelings about the pricing changes. While there are fewer discounts and decreased delivery charges, the subscription charges have increased. The subscription, known as Speedy Super, has seen a 20% price hike compared to the previous year. These changes have resulted in a negative perception of Swiggy’s pricing model among customers.

Restaurant Concerns about Swiggy’s Pricing

Restaurants, on the other hand, are not pleased with the high commissions and prices set by Swiggy. Their businesses have been affected by the increased demand for dining out, and the commissions have added to their financial burden. Both Swiggy and its competitor, Zomato, are charging a significant amount in commissions, leaving restaurants dissatisfied and looking for alternative solutions.

Delivery Partner Challenges with Swiggy’s Pricing

The delivery partners, also known as Swiggy’s backbone, have their grievances with the pricing structure. While they receive incentives for long-distance orders, there is no guarantee of return orders once the long-distance order is completed. Additionally, delivery partners have to bear the cost of fuel for traveling back to their zone without the assurance of another order. These challenges have left the delivery partners feeling less motivated and asking for higher incentives for covering long-distance orders.

Proposed Solutions for Swiggy’s Pricing Challenges

Swiggy’s pricing model has faced significant backlash from all key stakeholders. In order to address these concerns and improve overall satisfaction, Swiggy should consider implementing the following strategies:

1. Value-Oriented Pricing

While Swiggy initially adopted a penetration pricing strategy to attract customers, it is crucial to introduce value-oriented pricing to change the negative perception surrounding the current pricing model. By offering value-based discounts, Swiggy can demonstrate its commitment to providing affordable and high-quality food delivery services.

2. Incentive Enhancement for Delivery Partners

To motivate and retain delivery partners, Swiggy should focus on implementing a demand-based pricing system. This system should offer higher incentives for delivery partners operating in high-demand areas. By aligning incentives with market demand, Swiggy can encourage delivery partners to cover long-distance orders and ensure their overall satisfaction.

3. Transparent Pricing Communication

Swiggy should improve its communication regarding pricing changes to all stakeholders, including customers, restaurants, and delivery partners. Clear and transparent communication can help manage expectations and mitigate any negative reactions to pricing changes. Swiggy can also explore the possibility of seeking feedback from stakeholders on pricing decisions to foster a sense of inclusivity and reduce resentment.


Swiggy’s pricing strategy has faced challenges in meeting the expectations of its stakeholders. However, by implementing value-oriented pricing, enhancing incentives for delivery partners, and improving communication, Swiggy can overcome these challenges and increase sales and profits. It is essential for Swiggy to listen to the concerns of its stakeholders and strive for a pricing model that is mutually beneficial for all parties involved.

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