Swiggy And Zomato Raise Platform Fees To Boost Revenue. How It Affects You

Food delivery giants Swiggy and Zomato have increased their platform fees. Ordering food from both platforms has become a little more expensive. The companies have increased the platform fee charged per order from customers in key markets like Bengaluru and Delhi.

Earlier, these companies were charging Rs 5 in these markets. Additionally, Swiggy is now hinting at a platform charge in Bengaluru of Rs 7, which has been struck off and reduced to Rs 6. Let us tell you that both companies started the platform fee last year, which was initially Rs 2 per order. Zomato increased its platform fee by 25% to Rs 5 per order in April in key markets including Bengaluru, the National Capital Region, Mumbai, Lucknow and Hyderabad.

Zomato and Swiggy are experimenting with platform fees to increase their overall revenue and profit. In January, Swiggy showed a platform fee of Rs 10 for selected users, which was much higher than the Rs 3 being charged to many users at that time. The Rs 10 charge was not taken from users, where they were shown a higher fee and then charged Rs 5 at the time of final payment after a discount.

The quick commerce arms run by these platforms, namely Blinkit and Instamart, also charge an equivalent fee called handling charges. Swiggy Instamart charges Rs 5, while Blinkit charges Rs 16 per order in Delhi.

Deepak Shenoy, the CEO of Bengaluru-based company Capitalmind, has said that he has reduced ordering from these platforms. Taking to X (formerly Twitter), he wrote, “Massively reduced ordering from Swiggy/Zomato, down to just once maybe on a weekend, like today and noticed their “platform” charge is now Rs. 6. Happy that I weaned myself off the daily ordering. They also take 30% from restaurants, btw.”

The founder-CEO also revealed that he used to order around 12 times a week, which has gone down to either once a week or once every two weeks. “It’s gone down to once a week or once in 2 weeks. Moved to a much healthier home-cooked alternative. Used to be 10-12 orders a week,” he added.