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Food Deliveries Set to Become More Expensive as Zomato, Swiggy Increase Platform Fees

Kaia by Kaia
15/07/2024
in News
Dane County Food Pantries Advocate for Increased Financial Support
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New Delhi: Food delivery giants Zomato and Swiggy have announced another hike in their platform fees, raising it from ₹5 to ₹6 per order—a 20% increase. This change is currently being implemented in Delhi and Bengaluru and will soon extend to other cities.

The platform fee is distinct from delivery fees, Goods and Services Tax (GST), restaurant charges, and handling charges. It is a separate charge that goes directly to the food aggregators to help manage costs and boost revenue.

This latest increase follows a previous hike by Zomato in April, where the platform fee was raised by 25% to ₹5 per order. Zomato initially introduced a platform fee of ₹2 in August last year, which was subsequently increased to ₹3 as part of its strategy to improve margins and achieve profitability.

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With the new fee structure, Zomato and Swiggy aim to generate between ₹1.25 crore and ₹1.5 crore daily. The companies assert that these fees are necessary to cover operational costs and ensure sustainable growth in the competitive food delivery market.

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Kaia

Kaia

Kaia Green is a staff writer for WhatFoodrecipes, where she covers everything from holidays to food. She is a graduate of Syracuse University, where she received a B.A. in magazine journalism. She has taste-tasted hundreds of products and recipes since joining WhatFoodrecipes in 2023 (tough job!), she considers the kitchen to be her happiest place. When she’s not at the supermarket or trying out a new recipe, you can find her at the beach, in her backyard or on the couch — typically with a glass of wine in hand.

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