Ordering from Zomato or Swiggy? Expect higher charges as platform fees rise—how much more will you pay?

Food delivery platforms Zomato and Swiggy have reportedly increased their platform fees in select markets, effective July 14, according to recent media reports. 

Both the food delivery giants have increased their platform fees by 20% to ₹6 in Delhi and Bengaluru, up from the previous charge of ₹5. 

Swiggy experimented by charging ₹7 as a platform fee in Bengaluru, later discounting it to ₹6. 

Currently, the food delivery majors will charge the revised platform fees in Delhi 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 ₹2 per order. 

Zomato later increased the fee from ₹2 to ₹3 in October 2023. It raised the platform fee for users from ₹3 to ₹4 in January this year and later revised it to ₹5 in April, a 25% rise, in selected cities such as Delhi, Mumbai, Hyderabad, Bengaluru and Lucknow.

During peak hours, these apps may charge up to ₹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 ₹1.25-1.5 crore a day just by levying a platform fee.

Zomato's share price surged over 4% and touched a 52-week high on Monday, a day after the food delivery aggregator announced it was increasing its platform fee to ₹6 from ₹5. The new platform fees, which will be implemented in a few areas like Bengaluru and Delhi, 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 ₹2 trillion.