Have you ever wondered how the tip you leave for the delivery person on the Swiggy app gets to them? Apparently, it’s not as simple as you imagined.
When you pay your Swiggy delivery guy for the effort it took them to bring your order on time, there’s a lot more at play, according to Vivek Raju, who helps founders at the Series A/B/C stage “build a compelling investor/sales narrative.”
Raju’s investigation on the X platform (previously Twitter) was prompted by a conversation with a Swiggy delivery worker who claimed he did not receive the Rs 30 tip he paid through the app in addition to the Rs 36 delivery fee levied by Swiggy.
He later consulted with an expert on the matter as well as Swiggy’s customer support to determine a slew of reasons why delivery persons don’t notice the tips after delivering the order.
“- Tips earned are only shown to delivery partners the following day.” The reason for this is to allow tip ploughback if a customer requests a refund for poor service (assuming tip is previously paid at checkout, as I did in my case).
– Delivery partners are presented the tip in its entirety.
– Earnings (including tips) are distributed to delivery partners on a weekly basis. So tips are amassed till the end of the weekly cycle, at which point cash is distributed.
– It is unclear whether the delivery partner is paid in whole or if a TDS is deducted before payment.
“- I am extrapolating here but this means the Rs 36 I saw in the delivery partner’s phone is the total earnings for that order without the tip (I may be wrong here).”
“Guys, please pay them in cash while he/she delivers the food to avoid confusion.” “I do this, and their (delivery agents’) expression is priceless,” claimed one X user, while another hoped the total earnings did not include the expense of gasoline.
“I give cash tips at the time of delivery to avoid this confusion I had,” another X user explained.
“I can assure you that it does not go to restaurants.” “Aggregators don’t even share how much delivery cost is charged on any order,” another X user observed.
SotBank-backed Swiggy is planning to debut on the stock exchange in 2024 and has begun discussions with bankers to determine its valuation, according to Reuters in August.