Swiggy follows Zomato, increases Platform fee by 60%, but this may be the 'big difference'

Bengaluru-based

food delivery

platform

Swiggy

has hiked its

platform fee

to Rs 10 per order. The price increase For Swiggy's food delivery app come just a day after its Gurgaon-based rival increased the platform fee to Rs 10. While Zomato previously charged Rs 6 as platform fee, for Swiggy it stood at Rs 7 earlier.

Platform fee increase by Zomato

Zomato increased the platform fee it charges users for food delivery to Rs 10 per order during the festive season from Rs 7 earlier, according to information on the company’s app.

“This fee helps us pay our bills to keep Zomato running. To maintain services during the festive rush, it has increased slightly,” a notification on the app said.

What may be the 'big difference' between the fee hike by Swiggy and Zomato

Zomato has increased the platform fee temporarily. As the message on the Zomato app says that the fee has been increased "To maintain services during festive rush,..." However, there is no such clarification or notification on Swiggy app, so it is likely that the platform fee hike on Swiggy is permanent.

What exactly is Platform fees

Platform fees are additional charges applied to each food order, separate from restaurant charges, delivery fees and goods and services tax. To be sure, the platform fee also attracts GST of 18%, which is not included in the Rs 10 levy. This means Zomato’s customers will pay Rs 11.80 on every order as platform fee inclusive of tax.
According to a report in Economic Times, as per people tracking the sector, these platforms deliver 2-2.5 million food-delivery orders per day and any increase in platform fee improves their revenue.
Incidentally, Swiggy was the first to start charging platform fees. Zomato followed suit and introduced the platform fee in 2023, as a Rs 2 per order flat levy. This amount has been subsequently increased over time by both the companies.