Zomato and Swiggy hike platform fees, food delivery to become costlier in select cities

Food delivery giants Zomato and Swiggy hike platform fees by 20% in key cities to increase their earnings.

Updated on: Jul 15, 2024, 12:40:13 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Food delivery giants Zomato and Swiggy have hiked their platform fees, which can lead to costlier food deliveries, the Economic Times wrote, adding that the fees have been hiked to ₹6 from ₹5, which is a 20% increase. This is specifically for key markets like Delhi and Bengaluru, as the near duopoly of food delivery services looks to boost their earnings.

Zomato and Swiggy hike platform fees for key markets like Delhi and Bengaluru, as the near food delivery services duopoly looks to boost earnings.

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Swiggy teased a ₹7 platform fee in Bengaluru that is struck-off and discounted to ₹6 at checkouts, the Economic Times had reported earlier. Zomato also has a Priority Fee for faster delivery.

How much more can Zomato and Swiggy earn out of the platform fee hikes?

Zomato handling around 2.2-2.5 million orders daily can see additional profit of ₹25 lakh a day, according to a Business Standard report, which added that the companies expect a daily revenue of ₹1.25-1.5 crore a day due to the new platform fees.

Since when did Zomato and Swiggy start charging platform fees and how much was it?

Both Zomato and Swiggy started charging platform fees only last year, starting off with a ₹2 per order charge, which grew to ₹4, and then ₹5 per order in larger markets like Delhi-NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow.

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Due to this, Zomato shares hit an all-time high of ₹232 on the Bombay Stock Exchange, making founder and CEO Deepinder Goyal, a billionaire. The company has also seen a year-long rally, primarily due to the growth of its quick commerce subsidiary, Blinkit.

How much do quick commerce giants like Blinkit and Instamart charge as platform or handling fees?

Zomato’s Blinkit and Swiggy’s Instamart, both have platform fees, termed as ‘handling charges’ with Blinkit charging ₹4 per order and Instamart charging ₹5 per order in Bengaluru, according to a Times of India report, which added that In Delhi, Blinkit charges ₹16, while Instamart charges just ₹5.

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HT News Desk
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