Swiggy Raises Platform Fee To Rs 15 Per Order: What It Means For Customers
Bengaluru, Karnataka: Food delivery platform Swiggy has increased the platform fee for its service to Rs 15 from Rs 12 in certain geographies following increased demand. The spike, which was earlier revised to Rs 14, is now being pushed further. The Rs 15 platform fee includes goods and services tax (GST).
The rival Zomato had recently hiked fee on food delivery orders to Rs 12 from Rs 10 including GST, as demand is expected to surge during the festive season.
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It was Swiggy that first introduced a platform fee of Rs 2 in April 2023 and gradually raised it to Rs 12 as part of efforts to improve unit economics. Zomato later followed the move to improve profitability. The platform fee includes an extra line item distinct from delivery charges, GST, and restaurant commissions.
The rise in the platform fee comes at a time when the company faces a net loss for the April–June quarter doubled year-on-year to Rs 1,197 crore due to higher investments in its quick-commerce arm Instamart, the company said last month.
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The spike in platform charges may affect customers as they find their food delivery costs going up, and face higher prices. Though the fee helps the company to cover its operational costs and improve profitability, it may lead customers to rethink about reliance on the platform. Further, the frequent fee hikes can lead to customer dissatisfaction and may affect their loyalty, potentially pushing them to competitors or alternatives.
