Swiggy a Bangalore based food delivery startup has introduced surge pricing. Surge pricing is for restaurants on occasions such as Festivals, National Holidays and some weather conditions. Swiggy claims that increase in prices will enables more delivery executives on the rad during these days. For Ola and Uber the surge fares will be given to the drivers and in case of Swiggy the surge pricing will be giving to delivery staff.

Swiggy is present in 8 major cities and has 3 rounds of funding, plus 8 million app downloads. It claims to have 5k restaurants and 3k delivery boys on their platform. For now Swiggy’s revenue model will remain the same and the revenue generated by them will be passed to the restaurant folks.

Swiggy started their operations in August 2014. Currently surge pricing is applicable in Hyderabad and Bengaluru and soon the surge pricing will be expanded to other cities such as Gurgoan, Delhi, Pune, Mumbai, Chennai and Kolkata.

According to Swiggy,

“It (surge) would be applicable on selective occasions like select national holidays, festivals and during days of excessive rains to incentivize the delivery executives. The surge fee received is passed on to the delivery executives.”

Sriharsha Majety Founder and CEO of Swiggy said

“being in the demand and supply business they are very mindful of the orders they take to ensure consistency in quality of service. Today, there are places where Swiggy has hit less than 30 minutes delivery time.”

There is an increase in number of urban Indians who prefer shifting to Non-home cooked food choices and food delivery. So in this case if Swiggy deliver the food to you even in heavy rains then they should be applauded.  Such services follow the concept of demand vs supply theory which has a case of low supply and higher demand. The startup claimed to have around a million orders in April.