Food delivery just got pricier: Swiggy joins Zomato with Rs 10 fee hike

Zomato has communicated that its festive season hike is temporary, whereas Swiggy has not offered any such clarification

Bengaluru-based food delivery platform Swiggy has increased its platform fee to Rs 10 per order. This hike follows closely on the heels of Gurgaon-based competitor Zomato, which also raised its platform fee to the same amount just a day earlier. While Zomato had previously charged Rs 6 as a platform fee, Swiggy’s fee stood at Rs 7 before the latest increase.

 

Zomato’s festive season platform fee hike 

Zomato raised its platform fee from Rs 7 to Rs 10 per order during the festive season, as displayed on the company’s app. The notification on the Zomato app reads: “This fee helps us pay our bills to keep Zomato running. To maintain services during the festive rush, it has increased slightly.” The company has indicated that the hike is temporary, introduced specifically to manage the surge in orders during the festive period.

 

Differences between Swiggy and Zomato’s fee hikes 

A key difference between the two increases lies in their duration. Zomato’s platform fee hike is temporary, justified by the need to handle the increased demand during the festive season. However, Swiggy has provided no such clarification on its app. The absence of any notification or explanation from Swiggy suggests that this increase may be a permanent change. The lack of communication has left users speculating about the duration and purpose of the fee hike.

 

Understanding platform fees 

Platform fees are additional charges applied to each food delivery order, separate from restaurant prices, delivery charges, and goods and services tax (GST). It is important to note that platform fees also attract GST at 18 per cent, which is not included in the Rs 10 levy. For Zomato users, this brings the effective platform fee to Rs 11.80 per order, inclusive of taxes.

 

These platform fees are critical for food delivery services, as they help cover operational costs and improve the company’s revenue. According to a report by Economic Times, industry insiders estimate that these platforms handle 2 to 2.5 million food delivery orders per day. Therefore, any increase in platform fees has a direct impact on revenue generation for companies like Swiggy and Zomato.

 

Swiggy was the first to introduce platform fees, setting a trend that was later followed by its rival Zomato. Initially, Zomato began charging a platform fee in 2023, starting at a flat rate of Rs 2 per order. Over time, both Swiggy and Zomato have gradually increased their platform fees, reflecting rising operational costs and the growing demand for food delivery services.

 

Platform fee hike sparks social media outcry 

The recent hike in platform fees has sparked a wave of reactions on social media.

 

“Food ordering started with free delivery, now GST, delivery and packing charges, platform fee,” wrote finfluencer Ravisutanjani, expressing frustration over the growing list of costs. 

  “I strongly feel that it is the right time to say goodbye to Zomato, Swiggy, Flipkart, Blinkit, and similar frauds as it has become common for them to loot customers in the name of platform fee, handling charges, and what not,” X user Snehil commented.

 

Aditya Shah highlighted the burden on users, saying, “Pay an inflated cost of food to use the platform. Pay a platform fee to use the platform. Restaurants pay a fee to use the platform. And finally, pay with your health by eating outside food.”   

  The sentiment was echoed by others, with one person writing, “Platform fee to be higher than delivery charges soon,” and another simply stating, “Getting too expensive.”

 

The fee hike also inspired a series of memes across social media platforms