Swiggy And Zomato Price Hike Platform Fees to Capitalize on the Increased Demand During the Festive Season

Swiggy and Zomato have recently increased their platform fees for food delivery orders. These additional charges are applied on top of existing fees like delivery costs, restaurant charges, and GST. The price adjustment is likely in response to the expected rise in food delivery demand during the festive season. Zomato, owned by Eternal, is also experimenting with a 'VIP Mode' offering priority deliveries and customised services for an extra fee.

Zomato has raised its platform fee by Rs. 2, making it Rs. 12 per order now. Swiggy's fee has also gone up; customers will now pay Rs. 15 instead of the previous Rs. 12 when placing an order. Although this increase might seem minor to consumers, it could significantly boost the companies' revenues. According to Moneycontrol, Zomato handles about 2.3 to 2.5 million orders daily, while Swiggy processes around 2 million orders each day.

Revenue Impact and New Competitors

Based on these figures, both Swiggy and Zomato could generate approximately Rs. 3 crore daily from platform fees alone. Gadgets 360 staff members noticed the updated fees on Wednesday. This marks Swiggy's third fee hike in three weeks; they had previously increased prices during the Independence Day rush before reverting to Rs. 12.

Zomato has been gradually raising its platform fees since introducing them in 2023. Additionally, Zomato's new VIP Mode is being tested at a cost of Rs. 50, offering faster deliveries and personalised services to customers willing to pay extra.

Emerging Competition: Rapido's Ownly

Meanwhile, Rapido has launched a new food delivery service called Ownly in Bengaluru and surrounding areas, aiming to compete with Swiggy and Zomato by offering affordable meals priced below Rs. 100 for items like rice and eggs. Ownly plans to undercut competitors by providing food at prices 15 percent cheaper than Swiggy and Zomato.

Unlike its rivals, Ownly will not impose platform fees or packaging costs; instead, restaurants will be charged a flat delivery fee without any hidden costs or inflated prices.

The introduction of Ownly adds another layer of competition in the food delivery market as it seeks to attract budget-conscious consumers with its cost-effective offerings. This development comes amid ongoing antitrust scrutiny faced by fast-delivery companies like Zomato, Swiggy, and Zepto.