Food Delivery Platforms Raise Platform Fee
Swiggy and Zomato, leading food delivery platforms, have once again increased their platform fee for customers. The fee has been hiked by 20%, from Rs 5 to Rs 6 per order. This charge is distinct from delivery fees, GST, and other surcharges like restaurant and handling fees.
Currently, the platform fee is being implemented in Bengaluru and Delhi, according to Moneycontrol. It applies to all food orders and is directly deposited with the company. Both platforms offer membership programs, but customers enrolled in these programs are still subject to the fee.
The additional revenue from the platform fee aims to control costs and enhance profits for Swiggy and Zomato. The increased fee will eventually be applied nationwide.
Despite the seemingly modest Rs 1 hike, the impact on the platforms’ earnings is significant. Zomato delivers approximately 22-25 lakh orders daily, resulting in a daily surplus income of Rs 1.25 crore to Rs 1.5 crore.
Swiggy initiated the platform fee in April last year, with Zomato following suit in August. However, Swiggy has stated that it does not intend to raise the fee substantially.
Notably, the platform fee currently does not apply to the quick commerce entities Instamart (Swiggy) and Blinkit (Zomato). However, Zepto, another player in the quick commerce sector, implemented a platform fee of Rs 2 per order in March this year. Zepto processes around 5.5 lakh orders daily.
