Food delivery apps Swiggy and Zomato have hiked platform fees, pushing charges up per order by 20% to Rs. 6 from Rs. 5. Introduced in Delhi and Bengaluru initially, the fee will be marked for every food order regardless of customers having enrolled for membership plans on both platforms. The platform fee is a different charge from the delivery fee, goods and services tax (GST), restaurant charges and handling charges that are levied.
The platform fee contributes directly to the revenue and cost management efforts within the companies. The increased platform fee will be rolled out to other cities too.
Swiggy had introduced a platform fee of Rs. 2 in April 2023, after which Zomato did the same in August that year. Last year, Zomato had pushed up the platform fee to Rs.3 finally helping it gain profitability.
Then, earlier in April this year, Zomato had already hiked its platform fee by 25 percent to Rs. 5 per order.
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According to a recent report by Bain published earlier in July, the food services market in India is estimated to grow at 10-12% year-on-year over the next 7 years, with average spend growing to between Rs. 230-250 per order from Rs. 220-240 per order.
The companies have not implemented these changes for their quick commerce subsidiaries Instamart and Blinkit.
