Swiggy’s extra charge: Foodtech giant Swiggy has started charging a platform fee of Rs 2 per order along with the cart value i.e total bill. (Swiggy’s extra charge) Swiggy is highly focused on profitability, for which this decision has been taken to keep the earnings stable.
Currently, the platform fee is added in Swiggy’s food delivery service. The company has not implemented this for Instamart orders.
A Swiggy spokesperson said, “The platform fee is a nominal flat fee charged on food orders. This fee will help us optimize and improve our work on the Platform and enhance the App features to provide a seamless App experience.
Currently, Swiggy has introduced platform fee in Bengaluru and Hyderabad. The company hasn’t revealed when it will introduce the fee in other major cities.
Reasons for platform fee
The move comes at a time when Swiggy is grappling with mounting losses. Foodtech decacorn saw a net loss of INR 3,628.9 Cr in FY22, more than doubling from INR 1,616.9 Cr in FY21.
The company’s total revenue grew 2.2 times to Rs 6,119.8 crore in FY22 from Rs 2,675.9 crore in FY21. Revenue from operations increased by 124% to Rs 5,704.9 crore from Rs 2,546.9 crore in the previous year.
Earlier, Swiggy has cut off its 10% workforce or 600 employees following a thorough performance evaluation that was conducted in the year 2022.
Swiggy charge Details
According to the sources, in order to decrease cash burn, Swiggy’s quick commerce delivery service Instamart is also anticipated to be impacted by the impending layoffs.
The Platform fee is being charged only in Bengaluru and Hyderabad, where the company is headquartered. In other cities like Delhi and Mumbai, it will be introduced soon.
It is yet to be implemented for e-commerce, or for Instamart, under which Swiggy provides grocery deliveries
Though ₹2 seem very small, analysts say it would create a large enough corpus for Swiggy to reinvest back into its business.
