Prominent food delivery platforms Zomato and Swiggy have increased their platform fees by 20% from Rs 5 to Rs 6 per order in their key markets -Delhi and Bengaluru.
The food-tech companies introduced the platform fee last year with a starting price of Rs 2 per order to expand their revenue and profitability. It is a mandatory charge levied on the customers in addition to GST and restaurant fees. This charge improves the take rates of these platforms which is the money they make per order. These hikes come amidst times when the food delivery companies have not been able to receive increased commissions from restaurants.
The two assume a duopoly over the food delivery industry, so when Zomato first brought the charge with an initial value of Rs 2 per order, Swiggy followed suit with its collection fee.
Zomato’s earlier platform fee was Rs 4 per order in the major markets of the National Capital Region, Bengaluru, Mumbai, Lucknow, and Hyderabad which was made Rs 5 in April.
In January, Swiggy was in speculations to take its platform fee up to Rs 10, which came down to Rs 5 with a discount. The company plans to make it Rs 7 in Bengaluru which is currently Rs 6 with a discount at checkout.
The quick commerce platforms of Zomato and Swiggy, Blinkit, and Instamart respectively, charge a similar fee. In Bengaluru, the former has a handling charge which is Rs 4 per order, while for Instamart it is Rs 5 per order.
