Ordering food online in India is set to become slightly more expensive as Swiggy has increased its platform fee, just days after rival Zomato implemented a similar price hike. The move reflects a growing trend among food delivery companies to raise additional service charges as they look to strengthen revenue streams.
Swiggy Raises Platform Fee by Nearly 17%
Swiggy has increased its platform fee to ₹17.58 per order (including GST), up from ₹14.99 earlier, marking an increase of nearly 17 percent.
The revised fee is now visible to customers during checkout on the app. Swiggy has informed users that the additional charge will help the company “operate and maintain the Swiggy platform,” covering costs related to technology infrastructure, app maintenance, and overall operations.
Zomato Also Increased Platform Charges
The development follows a recent decision by Zomato to raise its own platform fee. Zomato increased the pre-GST fee from ₹12.50 to ₹14.90 per order, representing a hike of ₹2.40.
After taxes are added, the platform fees charged by both companies now appear to be almost identical, continuing a pattern where the two food delivery giants often mirror each other’s pricing strategies.
Industry observers say such moves are common in the highly competitive food delivery market, where companies closely track each other’s pricing changes.
Why Food Delivery Platform Fees Are Increasing
Platform fees have gradually become an important component of the total cost of online food orders. While the charge may appear small for a single order, it can add up significantly for users who order food frequently.
Companies justify these charges as necessary to cover expenses such as:
- Maintaining digital infrastructure and apps
- Customer support services
- Technology upgrades and security
- Operational costs across the delivery network
As competition intensifies and operational costs increase, food delivery platforms are increasingly relying on such fees to improve profitability.
New Competition Emerging in Food Delivery Market
The timing of the fee increase is notable as the food delivery sector is witnessing fresh competition.
Ride-hailing startup Rapido has recently entered the food delivery space by launching a service called Ownly in Bengaluru.
Unlike Swiggy and Zomato, Rapido has stated that it will not charge any platform fees from customers or restaurants, apart from a basic delivery charge. The company claims this approach could help reduce overall food delivery costs.
What the Fee Hike Means for Customers
For customers, the increase means slightly higher bills on every order. Although the difference may appear minor on a single purchase, frequent users could see their monthly spending on food delivery increase noticeably.
With new players entering the market and competition intensifying, industry experts say it remains to be seen whether existing platforms will continue raising fees or adjust their pricing strategies to retain customers.
For now, consumers may need to factor in higher platform charges while ordering food online, especially if they rely heavily on delivery apps.
