According to multiple media sources, customers must now pay Rs 6 for each order, up from Rs 5 previously—a 20% increase.
Zomato and swiggy hikes their platform fees by 20%,from Rs5 to Rs6
The platform cost is not the same as handling, delivery, goods and services tax (GST), or restaurant fees. It is currently assessed in Delhi and Bengaluru.
Platform costs on Zomato and Swiggy Have Increased Again
In an attempt to make matters worse, food delivery services Zomato and Swiggy have increased their platform fees by 20 percent, from Rs 5 to Rs 6. The delivery platforms in Bengaluru and Delhi are now levying the higher rates. Notably, this platform price is not the same as the delivery fee, handling charge, GST, or restaurant charge. The new pricing will eventually be extended to more cities by Swiggy and Zomato.
Zomato started charging a Rs 2 platform fee in August of last year, and then raised it to Rs 3. They made this decision in an effort to increase company profits and establish a model that would be financially stable. It is estimated that the company delivering food will earn between Rs 1.25 and Rs 1.5 crore per day from its new platform fee.
Other cities will also have the higher platform cost implemented. The food aggregators reportedly use the platform fee to reduce expenses and boost income.
Zomato increased its platform fee by 25% to ₹ 5 each order in April.
What Reports says?
In an effort to boost its margins and turn a profit, Zomato first charged a platform fee of ₹ 2 in August of last year. Later, it raised the fee to ₹ 3 .The food delivery platforms charge a platform fee with the goal of making ₹ 1.25–1.5 crore daily.
According to a previous report , Swiggy hinted to a platform fee of ₹7 in Bengaluru, which is cut to ₹6 at checkouts. To expedite delivery, Zomato also offers a Priority Charge.
By raising platform fees, how much more can Zomato and Swiggy make?
The Business Standard report stated that Zomato, which processes between 2.2 and 2.5 million orders every day, can make an extra ₹25 lakh per day. The companies also anticipate earning between ₹1.25 and ₹1.5 crore every day as a result of the increased platform fees.
What was the amount of the platform fees that Swiggy and Zomato charged? When did they start?
Not until this year did Zomato and Swiggy begin to collect platform fees; initially, each order cost ₹2. Later, this increased to ₹4, and in larger areas like Delhi-NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow, ₹5.
Zomato’s founder and CEO, Deepinder Goyal, became a billionaire when the company’s shares reached an all-time high of ₹232 on the Bombay Stock Exchange. The company’s expansion at Blink it, its rapid commerce business, has been the main driver of its year-long upswing.
What is the platform or handling fee structure of fast commerce behemoths like Blinkit and Instamart?
Both Swiggy’s Instamart and Zomato’s Blinkit charge ₹5 per order in Bengaluru, while Blinkit costs ₹4 per order. These platform fees are referred to as “handling charges.”
According to Money control
Swiggy’s co-founder and chief executive, Sriharsha Majety, addressed the platform fee in an email to staff members, saying, ” Food delivery has slowed down as compared to our projections (along with many peer companies around the world) “Even though we have sufficient cash reserves to withstand difficult times, we must continue to find ways to cut costs to ensure our long-term success even though we are essentially well positioned to withstand difficult times.
A platform fee was implemented by Zepto in March of this year, making it the first rapid commerce platform to include them. It’s unclear if other businesses will take a similar stance.
