Swiggy Increases Platform Fees Following Zomato's Lead

Rising Costs for Online Food Orders

Ordering food online is set to become slightly more expensive. Following a recent hike in platform fees by Zomato, Swiggy has also decided to raise its charges, increasing the fee to ₹14.99 per order (including GST). This marks an approximate 17% increase. The company has informed users that the revised fee will assist in the "operation and maintenance of the Swiggy platform." This notification is now visible during the checkout process on the app. This development comes shortly after Zomato raised its platform fees, which increased by ₹2.40 per order, pushing the pre-GST charge from ₹12.50 to ₹14.90. After accounting for taxes, both Swiggy and Zomato now charge nearly identical fees, continuing a long-standing trend where these competitors mirror each other's pricing strategies.

Reasons Behind the Fee Increase

The platform fee constitutes a small yet growing portion of food delivery bills. While these charges may seem minor individually, frequent users end up paying significantly more over time. Companies often justify these fees by citing the need to cover technical costs, app maintenance, and overall operations. Interestingly, the timing of this increase coincides with new competition in the food delivery sector, as ride-hailing startup Rapido has launched its service, Only, in Bengaluru.

Implications for Users

For customers, this latest price hike translates to a slight increase in the bill for each order. Although this rise may appear minimal, it can lead to a substantial difference in monthly expenses for those who order frequently. With growing competition, it remains to be seen whether these pricing trends will persist or if new entrants will drive changes in the market.