Zomato, Swiggy hike platform fee during festive season
Swiggy and Zomato have hiked their platform fee in a bid to capitalise on the festive season and holiday spirit.
Food delivery platforms and hiked their platform fee to Rs 10 on Wednesday, as the companies look to capitalise on festive rush.
Earlier in the day, Zomato's food delivery platform displayed a “Festive Season Platform fee”, which was higher and in the Rs 8 - Rs 10 range compared to its earlier Rs 6 per order.
“These are business calls which we take basis various factors from time to time,” Zomato said in response to the above developments.
This comes just a day after the Deepinder Goyal-led company filed its second quarter results and approved plan to raise $1 billion to strengthen its balance sheet.
Swiggy did not immediately respond to queries sent by YourStory.
Platform fee is the fee charged for using a particular platform, and is separate from delivery charges, goods and services tax, handling fee, and others.
In August last year, Zomato had introduced a flat platform fee of Rs 2 to enhance its margins, and has been increasing it ever since. The platform, along with its peer Swiggy, hiked its platform fee by 25% to Rs 5 in April. Zomato later hiked it to Rs 6.
This is not the first time Zomato has tried to capitalise on the festive season and holiday spirit to bump up its platform fee. Last year, it raised the platform fee to Rs 9 on New Year's Eve as a one-off hike.
The food delivery platform clocked Rs 75 crore in platform fee in the second quarter this year, a multi fold increase from Rs 13 it clocked in the corresponding quarter in the previous year.
However, the platform witnessed a decrease in delivery charges paid by customers during the reporting quarter. It received Rs 253 crore in Q2FY25, a 33% fall from Rs 379 crore it received in the previous year.
(The article has been updated)
Edited by Megha Reddy
