Publish by Priyanka Deshpande
Byline: Shilpa Ranipeta
CNBC-TV18.com
Published July 15 2024
Swiggy and Zomato recently hiked their platform fees from ₹5 to ₹6, marking roughly a 20% hike in select markets like Bengaluru, Delhi, and Mumbai.
At checkout, Swiggy often displays a struck-off fee of ₹ 7, settling at either ₹5 or ₹6 for consumers.
Introduced last year, the platform fee, now at ₹6 for Zomato, started at ₹2 and has seen five hikes since April 2023.
This is done to mitigate losses and boost profitability, augmenting earnings alongside restaurant commissions and ad revenues.
This fee is in addition to GST, restaurant charges, packing fees, delivery charges, and any other applicable fees.
Reports indicate potential future hikes to ₹10 for Swiggy and up to ₹9 for Zomato during peak ordering times, sparking customer backlash online.
Despite seeming negligible individually, these hikes could collectively impact platforms significantly, given their daily order volumes of 15-25 lakh each.
Analysts foresee potentially positive effects on Zomato's EBITDA, estimating up to ₹90 crore, and anticipate further fee increases to offset delivery charge waivers for premium customers.
Market reactions to these hikes have been favorable, with Zomato's stock reaching all-time highs.