Swiggy is charging ₹2 ‘platform fee’ amidst slowdown in delivery busines

According to a report, the fee, for now, is being levied only on food orders, and is ₹2 regardless of the total value of the order.

Swiggy is charging a ‘platform fee’ of ₹2 per order, irrespective of the order's total value, with the move coming as a part of the company's measures to control its costs.

The fee was rolled out over the past few weeks. (File)

In a statement to Hindustan Times, a Swiggy spokesperson said, “It will help us operate and improve our platform and enhance app features to deliver a seamless app experience.”

Here is all you need to know:

(1.) According to Moneycontrol, the fee, for now, is being charged only for orders in Bengaluru, where the company is headquartered. In other regions, including Delhi and Mumbai, the scheme is likely to be introduced soon.

(2.) Also, it is being levied only for food orders, and is yet to be implemented for e-commerce, or for Instamart, the branding under which Swiggy provides on-demand grocery deliveries.

(3.) The additional charge, rolled out over the past few weeks, is different from the handling fees levied on Instamart.

(4.) Though ₹2 seem very small, analysts say it would create a large enough corpus for Swiggy to reinvest back into its business, even as it delivers 1.5 million orders each day.

(5.) Globally, as well as in India, platform fee is a common practice, and is used to provide consumers with the best platform user experience. It is seen also in apps like BookMyShow, PhonePe, Food Panda, and more.