Swiggy, the food delivery giant, has announced a 50% hike in its platform fee, raising it from ₹2 to ₹3, effective from October 4. This move mirrors a similar strategy by its competitor, Zomato, which also bumped its platform fee to ₹3 in select regions.
What Happened? Initially introduced in Bengaluru and Hyderabad, Swiggy’s platform fee was later rolled out nationwide, states an ET report. Interestingly, the fee is currently presented as a ₹5 charge with a ₹2 discount, hinting at potential future hikes.
This fee is over and above the delivery charges, which are waived for members of Swiggy’s loyalty program, Swiggy One. However, even these privileged subscribers aren’t exempt from the platform fee.
Swiggy representative clarified in a statement to the publication that the ₹3 platform fee is now standard across most cities they serve. They emphasized that such fees are a widespread practice in the service industry.
Amidst this backdrop, Swiggy reported an 80% surge in losses in 2022, reaching approximately $540 million. Despite this, the company’s food delivery segment witnessed a 26% YoY growth, and its CEO, Sriharsha Majety, announced profitability in food delivery as of March 2023.
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