Negotiating with Zomato and Swiggy for Better Visibility

In the hyper-competitive Indian food-tech landscape, Zomato and Swiggy are no longer optional platforms; they are the primary gatekeepers of your customer base. However, for many restaurant owners, the standard 20% to 30% commission structure feels like a weight around their neck. The good news? These terms are not always set in stone.

Negotiating for better visibility or lower commission rates requires a mix of data, volume, and strategic positioning. Here is how you can level the playing field.

1. Understand Your Leverage Points

Before you call your Partner Sales Manager (PSM), you need to know what you bring to the table. Aggregators prioritize platforms that help them keep customers on the app. You have leverage if:

• You have high brand recall: If customers specifically search for your brand name rather than generic terms like 'Pizza'.
• You are a Multi-Outlet Brand: Managing 5+ locations gives you significantly more bargaining power than a single-screen kitchen.
• Exclusive Partnerships: Offering 'Platform Exclusivity' (staying only on Swiggy or only on Zomato) can often reduce commissions by 5% to 7%.

2. Using Data to Drive the Conversation

Don't go into a negotiation saying, "I want to pay less." Instead, use the data available in your partner dashboard to highlight your efficiency.

• Low Cancellation Rates: If your cancellation rate is under 1%, you are a low-risk partner. Point this out.
• Preparation Time (KPT): If you consistently mark orders 'Food Ready' faster than the industry average, you are helping the platform's delivery partners earn more per hour.
• Average Order Value (AOV): High AOV restaurants are more profitable for aggregators because the delivery cost is fixed while the commission is a percentage.

3. The 'Visibility' vs. 'Commission' Trade-off

Sometimes, you shouldn't negotiate for a lower commission, but for better In-App Real Estate. Instead of asking for a 2% discount, ask for:

• Periodic 'Hero Banner' placements during cricket seasons or festivals.
• Inclusion in 'Greatest Offers' or 'Safety First' collections.
• Reduced ad-bidding rates: Ask for 'Cost Per Click' (CPC) credits in exchange for choosing the platform as your preferred partner.

4. Tactics for New or Smaller Kitchens

If you are a new cloud kitchen, you lack the volume for heavy negotiation. In this case, focus on the 'Growth Reset':

• The 3-Month Trial: Agree to a higher commission for the first 90 days in exchange for the 'New on Swiggy/Zomato' tag and boosted visibility.
• Performance Review Clauses: Add a clause stating that if you hit a certain order volume (e.g., 50 orders per day), your commission will drop by 2-3%.

5. Controlling the Ad Spends (ROAS)

Visibility is often bought through 'Cost Per Click' ads. To ensure you aren't wasting money:

• Targeting: Negotiate for narrower targeting. Only show ads to customers within a 3-5km radius to ensure high conversion.
• Day-parting: Ask your PSM to help you set up ads specifically for high-intent times (e.g., 8 PM to 10 PM) rather than burning budget throughout the day.

6. Managing the 'Commission' Math

In India, the typical breakdown looks like this:

• Base Commission: 18% - 25%
• Delivery Charges: 2% - 5%
• Platform Fees/Marketing: 2% - 3%

If you cannot lower the base commission, negotiate on the Marketing Fund. Many brands successfully negotiate a 'Cashback' model where a portion of the commission is returned as ad-credits to help boost visibility without affecting the platform's bottom line directly.

Next Steps: Maximize Your Growth

Negotiating with tech giants like Zomato and Swiggy can be intimidating. Often, it's about knowing the right industry benchmarks and having the right contacts.

Resvito helps restaurant owners navigate these complexities. From optimizing your menu for higher conversion to managing aggregator relationships and securing HoReCa loans for expansion, we ensure your business remains profitable while you scale.

Contact Resvito today to audit your current platform performance and let us help you grow your digital storefront.