Comparing Platform Fees: Zomato vs. Swiggy - How Much More Will You Pay for Your Order?

Food delivery giants Zomato and Swiggy have raised the platform fee by 20%, increasing it from ₹5 to ₹6.

Recent reports indicate that Zomato and Swiggy, leading food delivery platforms have raised the platform fee by 20%, increasing it from ₹5 to ₹6 in certain markets, effective July 14.

Image source Inc42

In Delhi and Bengaluru, both companies have increased their platform fees by 20% to  ₹6 from the earlier ₹5. In Bengaluru, Swiggy initially experimented with a fee of  ₹7 before adjusting it to ₹6.

These revised platform fees will initially apply in Delhi and Bengaluru, with potential expansion to other cities. It's important to note that platform fees are separate from other charges such as taxes, restaurant fees, and delivery costs.

Image source Reddit

This is not the first time these food delivery companies have raised their platform fees. Swiggy introduced platform fees in 2023, followed by Zomato with an initial fee of ₹2 per order. Since then, Zomato has raised the fee multiple times, most recently to ₹5 in selected cities.

The report suggested that these companies could generate an additional daily income of ₹1.25-1.5 crore solely from the platform fee increase, considering their high order volumes. The share price of Zomato surged over 4% following the announcement of the fee increase.

Although customers will have to pay more, this move is expected to significantly boost revenue for both companies, potentially benefiting their overall profitability.