Ordering Food Online To Get Expensive: Swiggy Raises Platform Fee After Zomato Hike

Days after Zomato raised platform fees, its competitor, Swiggy also raised platform fee on every delivery. Swiggy has increased its platform fee o Rs 17.58 per order, which includes GST rates as well. Earlier, the company used to charge Rs 14.99 for every order. The development is likely to increase the cost of th medium as well as small orders.

Swiggy Hikes Platform Fee

Swiggy has raised platform fee to Rs 17.58 per order, which also includes GST from Rs 14.99 earlier. With this, the platform fee has increased around 17%.

Zomato Platform Fee Hike

Online food delivery platform Zomato has raised the platform fee charged to food delivery customers for the second time in a year. The food delivery giant has raised its platform fee by Rs 2.5 per order. After adding taxes, both large apps now collect almost the same platform fee.

Rising Competition in the Segment

The recent platform fee hike by Swiggy and Zomato has come as the two industry players see a jump in competition. Ride-hailing firm Rapido had also brought its food delivery service Ownly in Bengaluru. The application is operating without levying any extra platform fee on customers or restaurants beyond basic delivery charges.

As per media reports, companies cite that increasing platform fee would help them to support technology upgrades, manage maintenance costs, app upkeep and other running expenses.

While the platform fee amount may see a single digit hike, but it often has a significant impact on the final charges at the time of check out due to additional expenses, like delivery charges, packaging charges, etc.

For users, each order now costs a little more on Swiggy and Zomato, even when food prices stay unchanged. One or two deliveries may not feel heavy. However, frequent orders over a month could raise household spending, especially while rivals test different fee models.

Swiggy, Zomato Platform Fee Hike: What it Means For Users?

The latest platform hike on Swiggy and Zomato will directly impact customers and their order cost. While there has been a minimal surge in prices, repeated orders can make a signifiant difference on their monthly spending.

Swiggy shares closed 0.84% lower at Rs 274.8 per share on BSE on Tuesday, March 24, with a market capitalisation of Rs 75,853.42 crore. The stock had dipped to an intraday high of Rs 282.25 per share and an intraday low of Rs 268.50 per share.