In Delhi and Bengaluru, Zomato and Swiggy are currently implementing a platform fee, distinct from delivery charges, GST, restaurant fees, and handling costs.
Zomato and Swiggy have raised their platform fees once again, increasing them to ₹ 6 per order from the previous ₹ 5—a 20% hike. This change, currently implemented in Delhi and Bengaluru, adds to the separate charges for delivery, GST, restaurant fees, and handling. The increased platform fee is set to expand to other cities as well.
Zomato and Swiggy Platform Fee Strategy and Revenue Impact
These fees contribute directly to the aggregators’ efforts to manage costs and boost revenue. In April, Zomato had raised its platform fee by 25% to ₹ 5 per order. Last year, it started with a ₹ 2 fee, later adjusting it to ₹ 3 to enhance profitability.
The platforms anticipate generating between ₹ 1.25-1.5 crore daily through these platform fees.
Swiggy and Zomato, leading players in food delivery, have increased their platform fee from Rs 5 to Rs 6 per order, marking a 20% rise. Initially rolled out in Bengaluru and Delhi, this fee is separate from delivery charges, GST, restaurant fees, and other associated expenses. It applies universally to all food orders, regardless of customer participation in loyalty programs offered by both platforms. This fee directly contributes to the companies’ revenue and cost management strategies.
‘Minor’ fee hike for ‘major’ profit
Despite appearing as a minor increase of Re 1 per order to consumers, for Zomato, which handles approximately 2.2-2.5 million orders daily, this translates to an additional income of Rs 25 lakh per day. As a result, food delivery companies anticipate a daily revenue boost of Rs 1.25-Rs 1.5 crore from this adjustment in platform fees.
Swiggy initially introduced a Rs 2 platform fee in April 2023, prompting Zomato to follow suit in August of the same year. Since then, both companies have incrementally raised this fee, observing that customers have accepted the increases without a noticeable decline in order volumes.
During peak hours, Zomato temporarily increased its platform fee to Rs 9 per order, while Swiggy tested charging Rs 10 to select customers across Bengaluru, Delhi, Hyderabad, and other cities.
Although Swiggy previously stated no intentions for a substantial platform fee hike, experts speculate that both companies will persist in raising prices until they face customer resistance leading to lower order volumes.
Swiggy and Zomato have introduced platform fees specifically for their food delivery services, without applying these fees to their quick commerce ventures like Instamart and Blinkit.
In contrast, Zepto made headlines in March by becoming the first rapid delivery startup to implement a platform fee. Handling approximately 550,000 orders daily, Zepto earns an additional daily income of Rs 11 lakh through a Rs 2 platform fee per order. Unlike Swiggy and Zomato, which leverage their established food delivery operations, Zepto focuses exclusively on quick commerce, distinguishing itself as the sole pure-play company in this sector.
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