Swiggy, a food delivery platform, has increased its platform fee by 17% to Rs 17.58 per order from the previous Rs 14.99, mirroring a similar move by Zomato. The revised charges are now visible on the Swiggy app, with the company stating that the hike is intended to support the operation and maintenance of the platform. This adjustment closely follows Zomato’s recent 19% increase in platform fee, amounting to an extra Rs 2 per order.
Both Swiggy and Zomato now charge nearly identical fees of around Rs 17.58 per order, inclusive of GST. Zomato’s pre-GST platform fee, as shown on its app, has risen to Rs 14.90 per order from the previous Rs 12.50. The escalation in fees by both platforms is in response to escalating input and operational expenses in the food delivery sector, driven by higher energy prices like LPG and crude oil, which have raised costs for restaurants and delivery partners.
The adjustments in platform fees by Zomato and Swiggy reflect a broader industry trend of platforms readjusting pricing strategies to maintain profitability in a competitive and cost-intensive market. Swiggy’s stock was trading marginally higher at Rs 273.40 on the BSE, showing a slight increase of 0.33%. Over the past month, the stock has witnessed a decline of more than 10%, around 40% in the last six months, and approximately 20% over the past year. Notably, shares of Eternal, Zomato’s parent company, saw a 2% increase post the announcement of the platform fee hike.
