The world of food and quick delivery services is transforming into a tighter space, with greater competition involving both small and major players. In a recent development in the food and quick-service delivery industry, two of the biggest names, namely Zomato and Swiggy, have reportedly increased the platform fee per order.
The charge levied on the platform fee has been increased from the previous Rs 5 per order to the new Rs 6 per order.
According to a Business Standard report, this was initially introduced in some major metro cities, including Bengaluru and Delhi. This platform fee is distinct from delivery charges, GST, restaurant fees, and other expenses associated with orders.
This fee will be applicable on all orders, irrespective of the size of the distance that needs to be covered. This is being done to boost the company's revenue options.
Netizens React to Hike
The one-rupee rise is expected to translate into a lump sum for these companies that handle millions of orders. Zomato alone had an order volume of 647 million in 2023. Swiggy, on the other hand, is said to have an order volume of 1.4 million per day.
Some netizens reacted to this development with disappointment. One of them took to X and said, "Massively reduced ordering from Swiggy/Zomato, down to just once maybe on a weekend, like today and noticed their "platform" charge is now Rs. 6"
Another user was more staunch in their opinion and called for a boycott of these applications and their services.
Zomato Shares Rise
The markets appear to have reacted well to this new development, as Zomato shares have risen significantly since the beginning of the day's trade on Monday, July 15. The Gurugram-based company's shares have seen steady crests and troughs, with them gaining 2.17 per cent or Rs 4.83, even scaling the life-high of Rs 232, before dropping to Rs 227.30 at 12:02 IST.
