Zomato and Swiggy, two food delivery companies, have raised the platform fee for customers to Rs 6 per order in important markets such as Bengaluru and Delhi. This marks a 20% increase from the previous fee of Rs 5 in these areas. Additionally, Swiggy in Bengaluru is currently displaying a platform fee of Rs 7, but it is crossed out and reduced to Rs 6 during the checkout process. The introduction of platform fees by both companies began last year at Rs 2 per order.
Platform charges play a vital role for delivery services as they aim to enhance their take rates, which dictate the profits earned from each order. With a duopoly in operation, Zomato and Swiggy have been testing different approaches with platform fees to elevate their overall revenues and profits.
Zomato and Swiggy have not provided any comments in response to the requests. In January, Swiggy had presented a platform fee of Rs 10 to certain users, which was significantly higher than the Rs 3 fee that many users were being charged at that time. The Rs 10 fee was not actually collected from the users, but was displayed during checkout, after which they were charged Rs 5 after a discount.
Zomato recently raised its platform fee to Rs 5 per order from Rs 4 in key markets such as the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow. This move is aimed at boosting profitability, alongside generating revenue from advertising. It is noteworthy that food delivery platforms are facing challenges in increasing the commissions they charge restaurants without facing backlash. Additionally, Zomato and Swiggy’s quick commerce arms, Blinkit and Instamart, also impose handling charges. In Bengaluru, Blinkit charges Rs 4 per order, while Swiggy Instamart charges Rs 5.