Swiggy Increases Platform Fee to Rs 17.58 Per Order, Matching Zomato's Move
Online food ordering in India is poised to become more expensive as Swiggy, one of the country's leading food delivery platforms, has raised its platform fee to Rs 17.58 per order, inclusive of GST. This adjustment, visible on the Swiggy app as of Tuesday, follows a similar increase by rival Zomato just days earlier, effectively bringing both major players' fees into alignment.
Details of the Platform Fee Revision
Swiggy last revised its platform fee in September 2023. The latest hike sets the fee at Rs 17.58 per order, which includes GST. In comparison, Zomato currently charges Rs 14.90 per order on a pre-GST basis. When GST is applied, Zomato's effective fee also reaches approximately Rs 17.58 per order, making the two platforms' charges broadly equivalent.
On March 20, Zomato had increased its platform fee by Rs 2.40 to Rs 14.90 per order on a pre-GST basis. Platform fees are fixed, per-order charges levied in addition to delivery fees and restaurant costs. These fees are designed to help companies cover operating expenses such as technology maintenance, customer support services, and other logistical overheads.
Impact on Consumers and the Broader Economic Context
The fresh hike by Swiggy is expected to raise the overall cost of online food ordering for millions of users across India. This increase comes amid a broader rise in delivery costs, partly driven by higher crude oil prices due to ongoing conflicts in the Middle East, which are pushing up fuel expenses. The simultaneous fee adjustments by both Swiggy and Zomato highlight the competitive yet synchronized nature of the food delivery market, where companies often mirror each other's pricing strategies to maintain parity.
As platform fees become a standard component of online food ordering, consumers may need to budget more carefully for their meal deliveries. The move underscores the challenges faced by delivery platforms in balancing operational costs with customer affordability, especially in a volatile economic environment.
