Swiggy's latest 'experiment' doubles platform fee to Rs. 10
Swiggy may double the platform fee on food orders from Rs. 5 to Rs. 10 in the coming days. With this move, the popular food and grocery delivery service aims to trim losses ahead of its IPO later this year. The Bengaluru-based firm has starting testing the new fee on its app for select customers, per Moneycontrol. Swiggy had introduced a platform fee in April 2023, initially charging Rs. 2 on some food orders.
Platform fee directly benefits the company
After noticing no negative impact of platform fee on order volumes, Swiggy expanded the fee to all customers and increased it to Rs. 5. Zomato, another food delivery giant, has also raised its platform fee from Rs. 2 to Rs. 5 in certain cases. A platform fee on every order directly benefits the company, improving its revenue and profits. This is considering the fact that each of these firms deliver around 1.5-2.5 million orders per day across India.
'We may or may not scale it up in future'
Your bill will highlight a platform fee of Rs. 10 but discounted to Rs. 5. Per the company, this is still an experiment. "Swiggy has not changed its platform fee. We're always running small experiments to better understand the consumer's choices," said a company spokesperson. "This is one such experiment, and we may or may not scale it up in the future if it doesn't meet our goal of serving our users in the best way possible."
