In a recent move, Bengaluru-based food delivery platform Swiggy has raised its platform fee to ₹10 per order, a notable jump from its previous charge of ₹7. This price hike comes just a day after its Gurgaon-based rival, Zomato, also increased its platform fee to ₹10 during the festive season.
Zomato’s Festive Fee Hike
Zomato, which earlier charged a ₹7 platform fee, temporarily increased it to ₹10 per order, citing the need to maintain service quality during the festive rush. A notification on Zomato’s app explained, “This fee helps us pay our bills to keep Zomato running. To maintain services during the festive rush, it has increased slightly.” Zomato’s platform fee is expected to revert to its original pricing post-festive season.
Permanent Hike for Swiggy?
Unlike Zomato’s temporary festive increase, Swiggy has made no such clarification about a limited-time hike, implying that its ₹10 platform fee could be a permanent change. The lack of any notification on Swiggy’s app has led to speculation that this price hike will stay in place.
What Are Platform Fees?
Platform fees are additional charges applied to each food order which are separate from restaurant charges, delivery fees, and taxes. These fees help delivery platforms cover operational costs. It’s important to note that the platform fee also attracts an 18% Goods and Services Tax (GST). This means that Zomato’s customers now pay ₹11.80 per order as a platform fee, inclusive of tax.
Impact on Food Delivery Revenue
According to industry reports, Swiggy and Zomato handle around 2-2.5 million food orders per day. Any increase in platform fees significantly boosts their revenue, as these platforms continually seek ways to improve profitability.
Incidentally, Swiggy was the first to introduce platform fees, with Zomato following suit in 2023, initially charging a flat ₹2 per order. Since then, both companies have gradually increased this fee over time.
