Consumer internet companies charge per order fees to up margins
unit economics and boost margins.
The moves are part of a broader push by consumer-focussed firms to turn profitable by reducing cost per order.
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Offering CollegeCourseWebsiteNorthwestern UniversityKellogg Post Graduate Certificate in Digital MarketingVisitIndian School of BusinessISB Product ManagementVisitIIM LucknowIIML Executive Programme in Data ScienceVisitIndian School of BusinessISB Applied Business AnalyticsVisitThe latest firms to join the bandwagon are ride-hailing platform Uber, which is levying a distance-based 'booking fee' on its cab services in some markets, and Tata Digital-owned BigBasket, which is now levying a Rs 5 per order handling charge on its quick commerce platform BB Now.
Zomato and Swiggy already charge a platform fee of Rs 2 on food delivery orders. People familiar with the matter said Zomato, which was piloting the Rs 2-fee in some locations, is now planning to expand it to more cities, and even hiking the fee to Rs 3.
Quick-commerce platform Zepto, which announced a $200 million fundraise on August 25, started levying a Rs 5 handling charge on every order earlier this year. Bengaluru-based Swiggy also levies a Rs 4 handling charge on Instamart orders.
Explaining the rationale behind levying the ‘booking fee’, Uber has said on its website, “The booking fee is a fixed fee added to every trip you take on most products in most cities. Booking fees help support regulatory, safety, and operational costs. This fee scales with the distance of the trip and is variable because operational costs scale with the distance of the trip. Please note, not all states have a booking fee”.
A spokesperson for the company, responding to ET’s queries,
