Ordering food from Swiggy / Zomato will be more expensive, as platform fees have increased by this much
Ordering Food From Online Platform Fees Have Increased By This Much: Swiggy has increased its platform fee for food delivery orders from ₹12 to ₹15 in select high-order areas. Initially, the company had planned to raise the fee to ₹14, but later pushed it up by another rupee. This ₹15 fee includes GST and is a fixed charge paid by customers in addition to delivery and food costs.
Zomato Also Raises Platform Fee from ₹10 to ₹12
Zomato has followed a similar route, increasing its platform fee from ₹10 to ₹12. However, unlike Swiggy, Zomato’s platform fee does not include GST. The company raised the fee ahead of the festive season, expecting a surge in orders.
Background on Platform Fees
- Swiggy first introduced a platform fee of ₹2 in April 2023, and gradually increased it to ₹12 over time.
- Zomato had also implemented a platform fee and raised it in October 2024 before this latest hike.
- The platform fee is meant to cover operational costs and boost profit margins on delivery orders.
Why Are These Fees Increasing?
Although the fee is small compared to the average order value (₹500–₹600), it adds up significantly across millions of orders and helps increase revenue.
- Swiggy’s Q1 FY25 loss doubled to ₹1,197 crore, largely due to heavy investment in its quick-commerce vertical, Instamart.
- Despite a 54% rise in operating income (₹4,961 crore), the company had a cash outflow of ₹1,053 crore, prompting tighter cost controls and monetization strategies like higher platform fees.
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