Swiggy hikes its platform fee on food orders to Rs 3
Swiggy has increased the platform fee that it levies on food delivery orders to Rs 3 from Rs 2. The Prosus-backed company had started charging a flat platform fee to its customers in April regardless of the order value.
Its rival, Gurgaon-based Zomato, also started charging a Rs 2 platform fee, which it subsequently increased to Rs 3 in some locations.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitIndian School of BusinessISB Digital TransformationVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitNorthwestern UniversityKellogg Post Graduate Certificate in Product ManagementVisitThe 50% increase in platform fee by Swiggy was implemented from October 4.
The Bengaluru-based company had initially started levying the fee in Bengaluru and Hyderabad, following which it expanded the charge countrywide. Currently, it charges the platform fee as a Rs 5 levy with a Rs 2-discount, indicating that the fee could eventually be increased further.
Also read | Consumer internet companies levy per-order charges to up margins
The platform fee is levied in addition to the delivery charge, which is waived for customers of the company’s loyalty programme, Swiggy One, who make an upfront payment and get benefits such as free delivery of food and grocery. However, the platform fee is also applicable to Swiggy One subscribers.
Also read | Swiggy launches ‘Lite’ plan, bundling for One programme to take on Zomato Gold
Responding to ET’s queries on the development, a Swiggy spokesperson said, “There has been no significant change on platform fee which is applied by most service players and is a common practice across
