Swiggy and Zomato Raise Platform Fees to Up to Rs. 15 Amidst Rise in Festival-Related Demand

Swiggy and Zomato on Wednesday increased their platform fees on food delivery orders. These are additional charges that are levied by the food delivery platforms on every order, in addition to other charges such as delivery fees, restaurant charges, and GST. This price hike is said to be in anticipation of the surge in food delivery orders ahead of the festive season. Meanwhile, Eternal-owned Zomato is also reportedly testing a new 'VIP Mode' that offers priority deliveries and tailored services, at an additional cost.

Swiggy, Zomato's Revised Platform Fees

Zomato has hiked its platform fees by Rs. 2, and food orders will now incur a Rs. 12 charge. Meanwhile, Swiggy has also increased its fees. When placing an order, customers will have to pay a platform fee of Rs. 15 — it was previously set at Rs. 12.

While this may seem like a marginal increase for customers, the collective impact can potentially increase the company's bottom line by a healthy margin. A Moneycontrol report states that Zomato processes about 2.3 to 2.5 million orders a day, while Swiggy's numbers are around the same mark; about 2 million per day.

Based on these numbers, the estimated daily revenue just from the platform fees amounts to roughly Rs. 3 crore for both Swiggy and Zomato. Gadgets 360 staff members were already being presented with the revised platform fees on Wednesday.

Notably, this is Swiggy's third platform fee hike in three weeks. It recently raised the price amidst the Independence Day festive rush, before bringing it back to Rs. 12. On the other hand, Zomato has been incrementally increasing its platform fees since it introduced the extra charge in 2023.

Zomato is also reportedly testing a new VIP Mode. At a Rs. 50 charge, customers will be able to take advantage of faster deliveries and tailored services.

Meanwhile, both apps now face a new competitor in the form of Ownly, a food delivery platform launched by Rapido. It is currently limited to Bengaluru and nearby areas. However, the platform aims to undercut both Swiggy and Zomato by delivering affordable food, with items such as rice and eggs priced below Rs. 100.

The company claims it will offer food items at prices 15 percent cheaper than Swiggy and Zomato. Instead of exorbitant hidden costs, restaurants will be charged a flat delivery fee. There will not be a platform fee, packaging cost, inflated prices, or any extra charges on Ownly.