How to Negotiate with Zomato and Swiggy for Better Visibility

In the competitive Indian F&B landscape, platforms like Zomato and Swiggy are no longer optional channels—they are the primary storefronts for thousands of cloud kitchens and restaurants. However, with commissions often ranging between 22% to 35%, plus additional costs for advertising, many owners feel their margins disappearing.

Negotiating with these aggregators isn't just about demanding lower fees; it is about building a data-backed case for why your brand is a valuable partner. Here is how you can negotiate better terms and secure premium visibility on the apps.

1. Understand Your Leverage: The Growth Metrics

Before reaching out to your POC (Point of Contact) or Account Manager, you need to know your numbers. Aggregators prioritize restaurants that contribute to their platform's health. You have higher negotiation leverage if you have:

• High Order-to-Click Ratio: If people click your menu and actually buy, the platform makes more money.
• Low Cancellation Rates: A rate below 1% shows you are a reliable partner.
• Strong AOV (Average Order Value): If your AOV is significantly higher than the area average (e.g., ₹600 vs ₹350), they earn more per delivery.

2. Navigating the Commission Conversation

While base commissions are often standardized, there is room for movement if you offer something in return.

The 'Exclusivity' Play

One of the most effective ways to lower commissions by 3-5% is by opting for an exclusivity agreement with one platform. By listing only on Swiggy or only on Zomato, you become a 'Strategic Partner.' This often unlocks lower commission slabs and free access to 'Pro/Gold' programs and visibility banners.

The Volume-Based Rebate

If you are a multi-outlet brand or a high-volume cloud kitchen (doing 1,000+ orders a month), propose a tiered commission structure. For example, ask for a 2% rebate if you hit a certain revenue milestone.

3. Optimizing for the Algorithm (Organic Visibility)

You don't always have to pay for 'Cost-Per-Click' (CPC) ads to stay on top. Negotiate with your account manager to understand the 'relevancy score' of your outlet. Factors you can optimize include:

• Fast Prep Times: Reducing ‘Food Ready’ time to under 10 minutes automatically boosts your ranking.
• High Ratings: Maintain a 4.0+ rating. Encourage customers to leave reviews through packaging inserts.
• Menu Tags: Ensure your menu uses high-search volume tags like 'Budget Friendly,' 'Healthy,' or 'Premium.'

4. Maximizing Ad Spends (ROI-Based Negotiation)

If you are spending money on Zomato/Swiggy ads, don't just 'set it and forget it.' Negotiate for Value-Adds:

• Slot Locking: Instead of bidding for every click, ask for a fixed-fee weekend banner at a discounted rate.
• Keyword Ownership: Negotiate to be the top result for specific keywords like "Best Biryani in Indiranagar" for a fixed monthly sponsorship instead of a fluctuating CPC.
• Customized Campaigns: Ask your account manager for 'Boosts' during lean hours (3 PM to 6 PM) in exchange for running a specific 'Deal of the Day.'

5. The Power of 'Co-Branding'

Aggregators love it when you bring external traffic to their app. If you have a strong Instagram following (5k+ followers), tell your Account Manager that you will run Instagram ads directing users to your Zomato link. In exchange, ask for organic placement in the 'Great Offers' or 'Safety First' collections on the app's home screen.

6. Managing the Relationship with Your Account Manager

Your Account Manager (AM) is your gatekeeper. Treat the relationship as a partnership rather than a conflict.

• Monthly Reviews: Set a formal 15-minute monthly call to review the 'Funnel Report.'
• Competitor Benchmarking: Ask them for insights on what the top-performing 10% of restaurants in your geography are doing differently.
• New Feature Beta-Testing: Be the first to volunteer for new features (like Zomato Live or Swiggy Minis), which usually comes with temporary free visibility.

Next Steps: Let Resvito Drive Your Growth

Negotiating with tech giants can be intimidating for busy restaurant owners. At Resvito, we specialize in managing the 'Digital Storefront' for Indian food brands.

How Resvito helps you:

• Onboarding & Liaising: We handle the paperwork and direct communication with Swiggy/Zomato to get you the best possible terms.
• Performance Marketing: Our experts manage your ad spends to ensure your ACOS (Advertising Cost of Sales) stays low.
• Menu Engineering: We optimize your menu photos and descriptions to improve conversion rates.

Ready to dominate the delivery apps? Contact Resvito today for a free audit of your Zomato/Swiggy performance.