Swiggy and Zomato's rising fees.
Swiggy has increased its platform fee to ₹17.58 per order, marking a 17% rise from the previous ₹14.99. This decision follows Zomato’s recent hike, reflecting a broader trend among food delivery platforms to enhance profitability.
The company communicated the updated fee at checkout, stating it would support the platform’s operational and maintenance costs. This adjustment is the latest in a series of revisions over the past year. Swiggy had previously increased the fee from ₹12 to ₹14 in select markets last August, later extending it more broadly and raising it again to ₹14.99 in early September.
Platform fees are applied to each food delivery order, supplementing delivery charges, taxes, and restaurant costs. Both Zomato and Swiggy initially introduced the fee at ₹2 per order in 2023 and have gradually increased it since then. Last week, Zomato raised its platform fee to ₹14.9 per order from ₹12.5.
These fee increases are anticipated to aid the companies in improving their margins, particularly as they invest heavily in expanding their quick commerce operations.
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