Snapdeal an online shopping portal have decided to expand their business by providing food and travel facilities by getting involved into partnership with Redbus and Cleartrip for travel, and Zomato for ordering food.
Ashish Kashyap founder and CEO of Ibibo Group and owner of Redbus said,
“Getting the inventory and the price is a commodity business.But these are mega malls with many buyers. For Snapdeal, travel will never be its main business, for us, it is,”
An official from Cleartrip said,
“Snapdeal will have access to our flight inventory, and we will share a portion of our commission with them,”
On each ticket Cleartrip makes around 3-4%. According to an insider source Snapdeal will charge 40-50% commission on every ticket booked. Snapdeal after offering travel services, a discount of Rs. 400 is offered on every domestic ticket. After Flipkart, Snapdeal is India’s second most valued startup. At a valuation of $6.5 billion, Snapdeal has raised $200 million in February and they have increased their valuation by 40% in last few months.
Other than food ordering and travelling icons, three companies have shared their API- Application Programme Interface with Snapdeal and it will charge certain commission on bookings made through its app.