Swiggy, Zomato hike platform fee - What it means for you

Ordering from Swiggy and Zomato just got more expensive. Both platforms have increased their platform fees by 20% in key markets like Mumbai, Delhi, and Bengaluru. That means with every order, you're now paying 6 rupees as the platform fee instead of 5.

But that’s not all – in Mumbai and Bengaluru, Swiggy is already hinting at another hike to 7 rupees.

Currently, though, the 7 rupees fee is currently struck-off and discounted to 6 rupees at checkout.

Both platforms introduced a platform fee of 2 rupees in 2023, and since then, the fee has been gradually increased. Why? Because customers seem willing to pay without reducing their order volumes.

This fee is separate from delivery charges, restaurant fees, GST, and applies even if you’re enrolled in any of their loyalty programs

Now, why is this hike necessary? While a 1 rupee increase per order may seem small, for Zomato, which handles around 2.2-2.5 million daily orders, this translates to an additional daily income of 25 lakh rupees! That's a significant boost to their revenue and profits.

Although Swiggy and Zomato charge a commission to restaurants, currently capped at 25% to 30%, this cap has been a major point of contention. But that’s a story for another day.

In the meantime, Swiggy has also launched an Eco Saver option.

By grouping orders, you get your food slightly later, save a few rupees, and reduce your carbon footprint. A win-win for you and the planet.

So, as the costs of ordering via food delivery apps add up, it’s important to stay informed and make smart choices. Make sure to hit that subscribe button and ring the bell for more updates on this evolving story and other business news. Thanks for watching.

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