Ordering Food From Swiggy, Zomato to Become Expensive In THESE Cities. Here's What We Know

New Delhi: Food delivery costs are expected to increase as Zomato and Swiggy have reportedly raised their platform fees to Rs 6 in certain markets. This fee hike marks a 20% increase from the current Rs 5 fee in major cities like Bengaluru and Delhi. Swiggy had initially proposed a platform fee of Rs 7 in Bengaluru but has since revised it to Rs 6.

This isn’t the first time when Zomato and Swiggy raised their platform fees. Both companies introduced platform fees in 2023, initially setting them at Rs 2 per order. Over the years, these fees have been increased.

In April, Zomato raised its platform fee by 25% to Rs 5 per order in key markets such as the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow. Moreover, Zomato charges users a Priority Fee for faster delivery.

What is the Platform Fee On Swiggy, Zomato

Platform fees are crucial for delivery companies as they aim to enhance their take rates—the percentage of revenue they earn from each order. With a duopoly in place, Zomato and Swiggy have been experimenting with increased platform fees to boost their overall revenues and profits.

Both companies' quick commerce arms, Blinkit and Instamart, also impose handling charges. In Bengaluru, Blinkit charges Rs 4 per order, while Swiggy Instamart charges Rs 5. In Delhi, Blinkit's handling charge is Rs 16, compared to Swiggy Instamart’s Rs 5.

In January, Swiggy had reportedly teased a platform fee of Rs 10 to select users, a significant increase from the Rs 3 fee many users were paying at the time. Although this fee was not actually charged, users saw the higher amount during checkout but were billed Rs 5 after a discount. Additionally, both platforms impose surge charges during peak times. Tata Group-owned BBNow charges a Rs 5 handling fee for all deliveries over Rs 99.