Platform fee hiked: Your Swiggy, Zomato orders are getting costlier
Food delivery behemoths Swiggy and Zomato have escalated their platform fee by 20%, from ₹5 to ₹6 per order. This change, currently in effect in Bengaluru and Delhi, applies to all orders, including those made by customers enrolled in loyalty or membership programs. The increased fee is separate from other charges such as delivery fee, goods and services tax, restaurant charges, and handling fees.
Fee hike expected to boost daily revenue significantly
The fee hike is expected to significantly boost the companies' daily revenues. For Zomato, which processes approximately 22-25 lakh orders daily, the increase could result in an additional income of ₹25 lakh each day. Overall, food delivery companies could see an additional income of ₹1.25-1.5 crore a day from the platform fee alone considering the revised platform fee of ₹6.
Customers express dissatisfaction over rising costs
Despite the companies' steady increase in platform fees since its introduction in April 2023, some customers are voicing their discontent with the rising costs. Deepak Shenoy, CEO of Bengaluru-based company Capitalmind, has publicly stated that he has "massively reduced ordering from Swiggy/Zomato," opting for home-cooked meals instead due to the increased fees.
Higher dish prices on platforms lead to customer backlash
In addition to the platform fee increases, some customers have noticed higher prices for dishes on these platforms compared to restaurant menus. Despite restaurants setting their own prices on Swiggy and Zomato, these observations have led some users to delete the apps and opt for dining out instead. This backlash indicates a potential challenge for the food delivery giants in maintaining customer loyalty amidst rising costs.
