Food delivery may be getting a little more expensive for Indian consumers. Just days after Zomato increased its platform charges, rival Swiggy has now followed suit, signalling a broader shift in how the country’s largest food-tech players are pricing their services.
The latest move highlights a growing trend, as competition intensifies and costs rise, platforms are increasingly leaning on service fees to sustain operations.
Swiggy Raises Platform Fee By 17 Per Cent
Swiggy has revised its platform fee to Rs 17.58 from Rs 14.99, marking a 17 per cent increase, reported NDTV Profit. The updated charge is now visible on the app, where users are informed that the fee supports the company’s efforts to “operate and maintain the Swiggy platform”.
This is not the first time the company has raised its fees. The last revision came in September, when the platform fee was increased by 20 per cent to Rs 14.99.
The latest hike, however, comes at a time when consumers are already dealing with broader cost pressures, making even small increments in everyday spending more noticeable.
Zomato Had Moved First
Swiggy’s decision comes closely on the heels of a similar move by its main competitor, Zomato. The company recently increased its platform fee by 19 per cent, translating into an additional Rs 2 per order.
With this, both Swiggy and Zomato now have near-identical platform fees, standing at around Rs 17.58, including GST.
The synchronised pricing by the two dominant players suggests a possible recalibration of pricing strategies across the sector.
Why Are Platforms Raising Fees?
Food delivery platforms have long operated on thin margins, balancing customer discounts, delivery logistics and restaurant partnerships. As the sector matures, companies appear to be shifting focus towards improving unit economics.
By raising platform fees, companies can generate a steady stream of revenue per order, independent of discounts or promotional campaigns.
What It Means For Consumers
For users, the increase may seem small on an individual order basis, but it adds up over time. Frequent users of food delivery apps could see a noticeable rise in monthly spending.
The timing of the hike is also significant. It comes amid concerns around elevated inflation and in the backdrop of state elections in West Bengal, when consumer sentiment and spending patterns are closely watched.
Higher platform fees, combined with delivery charges, packaging costs and surge pricing during peak hours, could push the overall cost of ordering food higher than before.
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