Swiggy increased the platform cost for its food delivery service by Rs 1 to Rs 15 on Wednesday in some areas where it is seeing strong demand, ahead of the holiday season. Previously, the cost was Rs 14.
The decision was made in advance of the holiday season, when there will likely be a spike in demand for food delivery services. In subsequent, non-festive days, Swiggy could lower the platform charge back to Rs 12.
Customers who place orders with food delivery services Swiggy and Zomato are charged a set cost known as the platform fee.
Platform fees were initially introduced by Swiggy. Following suit, Zomato implemented a platform charge in 2023, charging a flat price of Rs 2 for each order. Even though the fees are minimal when compared to the typical order value of Rs 500–700, they nonetheless contribute to the company’s increased total profits.
Zomato, a meal delivery service owned by Eternal, raised its platform cost for orders from Rs 10 to Rs 12 on Tuesday.
Swiggy and Zomato both keep making significant investments in their fast commerce divisions. Despite a 70% increase in revenue, Zomato’s parent business reported a 90% year-over-year (YoY) loss in consolidated net profit in the April-June quarter, dropping to Rs 25 crore from Rs 253 crore the previous year.
In contrast, Swiggy’s losses doubled to Rs 1,197 crore in the same time frame, mostly as a result of increased spending in its Instamart operation. At Rs 4,961 crore, its operational revenue increased by 54%.
Rapido, which has introduced its own service, Ownly, is another new rival to the food delivery duopoly.
The platform is presently available in the BTM Layout, HSR, and Koramangala districts of Bengaluru. Ownly is anticipated to impose a reduced commission rate of 8–15%, in contrast to Zomato and Swiggy, which charge eateries charges ranging from 16–30%.
