- July 14, 2024
Zomato and Swiggy have increased platform fee by 20% in these cities; how much customers will have to now pay per order – Times of India
Swiggy is also currently teasing a platform fee of Rs 7 in Bengaluru, which has been struck off and discounted to Rs 6.Incidentally, this is not the first time that the two companies have increased their platform fees. Both Zomato and Swiggy introduced platform fee in 2023. Zomato also charges users a Priority Fee for faster delivery.
The companies had started with a fee of Rs 2 per order, but increased them through the months. In April, Zomato increased its platform fee by 25% to Rs 5 per order in key markets including the National Capital Region, Bengaluru, Mumbai, Hyderabad and Lucknow.
What is platform fee on Zomato and Swiggy
Platform fees are essential to delivery companies as they look to improve their take rates, which determine the amount of money that these companies make on every order. With a duopoly in place, both Zomato and Swiggy have been experimenting with increased platform fees to boost their overall revenues and profits.
The quick commerce arms run by Zomato and Swiggy, namely Blinkit and Instamart, also charge an equivalent fee called handling charges. In Bengaluru, Blinkit charges Rs 4 per order in handling charges, while Swiggy Instamart charges Rs 5 per order. In Delhi, Blinkit charges Rs 16, while Swiggy Instamart charges Rs 5.
In January, Swiggy had reportedly teased a platform fee of Rs 10 to select users, sharply higher than the Rs 3 it was charging many users at that time. The Rs 10 fee wasn’t actually charged to the users, but teased during checkout where they were shown the higher fee and then charged Rs 5 after a discount. Both platforms also charge users surge charges during certain times for delivery. Tata Group-owned BBNow charges Rs 5 as handling charge on all deliveries above Rs 99.
