In a big blow to the foodies, Food delivery platform Zomato has hiked its platform fee from ₹10 to ₹12, excluding GST. The move comes ahead of the festive season when the food order demand is expected to surge. The company believes that this increase is necessary to cover the rising costs and to provide better facilities to the customers. Apart from Zomato has also reportedly hiked its fees, highlighting that India’s two main food delivery companies are under growing cost pressure. They are also facing slower growth.
Swiggy Also Raises Platform Fees
Zomato’s rival food platform, Swiggy, raised its platform fee by Rs 2 amid the festival rush. Now the delivery charges of Swiggy have gone to ₹14 per order.
What Is A Platform Fee?
The platform fee is an additional charge levied by both Zomato and Swiggy on every order. Apart from platform fees, the delivery giants also charge GST, and restaurant fees. First introduced in April 2023 at just Rs 2 per order, Zomato has steadily increased the levy over the past two years to its current level of Rs 12.
How Will It Impact Us?
Zomato’s increase in platform fees will add extra costs for customers. While the fee may seem small, it can significantly raise annual expenses for those who order frequently. The hike will have the greatest impact on customers placing low-value orders.
Festive Season Targeted
The fee hike is usually implemented during the festive season. With Navratri and Durgashtami leading into Diwali, followed by Christmas and New Year, companies often target these festivals for an increase. During the festive season, the number of orders on food delivery apps like Zomato and Swiggy rises significantly. This period puts extra pressure on the platforms’ technology and logistics. The fee hike is believed to have been implemented to manage this increased demand and ensure smooth service.
