Swiggy, Zomato Hike Fees: Food Delivery Gets Costlier In Bengaluru, Delhi

Online food ordering is set to become pricier in Delhi and Bengaluru as Zomato and Swiggy, leading food delivery apps, announced a hike in their platform fees.

The platform fee will increase from Rs 5 to Rs 6 per order, marking a 20 per cent rise. This adjustment excludes delivery fees, GST, restaurant charges, and handling fees.

The decision to raise platform fees aims to manage operational costs effectively and boost overall revenues. Plans are underway to extend this increment to other cities nationwide in the near future.

Earlier in April, Zomato had already raised its platform fee by 25 per cent, moving from Rs 4 to Rs 5 per order. This follows Zomato's initial introduction of a Rs 2 platform fee in August the previous year, subsequently increased to Rs 3, as part of efforts to strengthen profit margins and achieve profitability.

Through these adjustments, Zomato and Swiggy anticipate generating daily revenues between Rs 1.25 crore and Rs 1.5 crore from platform fees alone, underscoring their strategy to sustain profitability amidst a competitive market landscape in the food delivery sector.