Ordering food online is set to become more expensive as Swiggy has announced an increase in its platform fee. Following Zomato’s recent hike, Swiggy has raised its charge to Rs 17.58 per order, inclusive of GST, up from the previous fee of Rs 14.99. This adjustment represents an increase of approximately 17 percent. Users have been notified that this new fee will assist in “operating and maintaining the Swiggy platform,” a message that is currently displayed on the app at the time of checkout.

Zomato’s Recent Fee Increase

This fee revision comes in the wake of Zomato’s own increase, where it raised its platform charge by Rs 2.40 per order. Zomato’s pre-GST charge has now escalated from Rs 12.50 to Rs 14.90. As a result, both platforms’ charge structures have converged, reflecting a trend where these competitors often adjust their pricing in similar manners.

Reasons Behind the Fee Increase

Platform fees, though appearing modest on a per-order basis, are becoming a noteworthy component of overall food delivery costs. For frequent users, these small adjustments accumulate, leading to significant increases in monthly expenses. Companies like Swiggy and Zomato defend these fees as essential for covering costs related to technology, app maintenance, and operational expenditures. Interestingly, the timing of these hikes comes as the food delivery market experiences new competition, particularly with the launch of rap delivery service, Ownly, by ride-hailing startup Rapido in Bengaluru. Unlike Swiggy and Zomato, Rapido has pledged not to impose additional platform fees on customers or restaurants, aside from a basic delivery charge.

Implications for Consumers

For consumers, this latest fee adjustment translates to higher overall costs for each food order. While the increase may appear minimal on a single transaction, regular orders can lead to a significant uptick in monthly food spending. With the market dynamics evolving due to increased competition, it remains uncertain whether these pricing strategies will persist or if new entrants will provoke a reevaluation of current charges.

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