Just after the food delivery giant Zomato bumped up its platform fee, Swiggy wasted no time doing the same, raising its fee to Rs 10 per order, matching its rival. This small charge, added on top of your usual delivery costs, means your next food order might be a little more expensive.
What is Platform Fee?
The platform fee is a small extra charge that food delivery services and other e-commerce add to each order.
It started off low, Swiggy first introduced this fee in April 2023 at just Rs 2 per order.
But since then, as it is said, as the flow and services get expanded, the platform also steadily increased, with Swiggy bumping it up to Rs 3 in October 2023, Rs 5 in April 2024, and now Rs 10.
IPO Preparations
The company recently gained shareholder approval to increase its IPO fresh issue size to Rs 5,000 crore from the previously planned Rs 3,750 crore.
Image: Wikipedia (Representative)
As it gears up for its IPO, the company in FY24. reported a revenue of Rs 11,247 crore, driven by a gross order value (GOV) of Rs 24,717 crore from its food delivery business. Losses, however, have been narrowing, dropping by 44 per cent from Rs 4,179 crore in FY23 to Rs 2,350 crore in FY24.
New Initiatives
In addition to this, the company also recently launched Swiggy Bolt, a 10-minute food delivery service now available in six cities.
Furthermore, the company is also piloting a premium membership programme, Rare Club.
With annual fees starting at Rs 50,000, the club offers exclusive benefits to consumers who want a premium food delivery experience.
