Food-delivery firm Zomato has hiked the platform fee to Rs 6 from Rs 5 per order in Delhi, Mumbai and Bengaluru.
Both the food delivery giants have increased their platform fees by 20 per cent to Rs 6 up from the previous charge of Rs 5.
Swiggy experimented by charging Rs 7 as a platform fee in Bengaluru, later discounting it to Rs 6.
Currently, the food delivery majors will charge the revised platform fees in Delhi, Mumbai and Bengaluru, with plans to levy them in other cities later.
The platform fees are separate from other charges such as goods and services tax, restaurant charges, delivery fees and other charges.
This is not the first hike in platform fees by these food delivery companies. Swiggy introduced the concept of platform fees in 2023, and it was later implemented by Zomato, starting with Rs 2 per order.
Zomato later increased the fee from Rs 2 to Rs 3 in October 2023. It raised the platform fee for users from Rs 3 to Rs 4 in January this year and later revised it to Rs 5 in April, a 25 per cent rise, in selected cities such as Delhi, Mumbai, Hyderabad, Bengaluru and Lucknow.
During peak hours, these apps may charge up to Rs 9 per order.
Quick commerce arms of Zomato and Swiggy, Blinkit and Instamart also charge platform fees.
Although the customers will have to pay more, the revision of platform fees significantly increases revenue for these companies as both deliver around 20-25 lakh orders per day.
According to reports, these food-delivery companies may earn an additional income of Rs 1.25-1.5 crore a day just by levying a platform fee.
Zomato’s share price surged over 4 per cent and touched a 52-week high on Monday, a day after the food delivery aggregator announced it was increasing its platform fee to Rs 6 from Rs 5. The new platform fees, which will be implemented in a few areas of the cities, are anticipated to somewhat benefit the business's profitability.
On Monday, Zomato became a member of the exclusive group of companies with a market capitalisation (m-cap) of Rs 2 trillion.
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