Zomato, Swiggy test higher platform fees in select cities

Food delivery majors Zomato and Swiggy have begun experimenting with higher platform fees in select markets, tweaking charges depending on demand patterns, according to industry sources. The flat Rs 10 levy that both have imposed since October 2024 is now being tested at Rs 12 for Zomato and Rs 12.70 for Swiggy in some locations.

ALSO READLife and health insurance set to get full GST exemption

The additional fee is being collected not only from regular customers but also from paying members of Zomato Gold and Swiggy One, who otherwise enjoy benefits such as free delivery on orders above a certain value. Sources said that the move is less about immediate revenue and more about testing how far customers are willing to absorb extra charges during peak periods. Zomato, for instance, pushed through a fee increase during Ganesh Chaturthi in Mumbai, while Swiggy carried out similar trials in multiple cities over Independence Day.

From trial hikes to permanent charges

The pattern is not unfamiliar. When both firms raised platform fees to Rs 10 last October, they initially described the hike as a festive-season adjustment. But the “temporary” move became permanent, setting a new benchmark for fees that had started modestly just a year earlier. Swiggy first introduced the charge in April 2023 at Rs 2, raising it to Rs 5 by April 2024, Rs 6 in July, and Rs 10 in October. Zomato followed in August 2023 with Rs 3, bumped it to Rs 4 in January 2024, and also reached Rs 10 by October. With the latest experiments, customers are now looking at a fivefold jump from the first iteration of the fee.

ALSO READGST rate relief proposed for ACs, TVs, dishwashers Restaurants back the shift

Restaurants, through industry body NRAI, have largely supported such hikes, arguing that shifting some costs to customers eases the heavy commission burden on eateries. A typical partner restaurant pays out anywhere between 15% and 30% as commission, another 1.8% in payment charges, and 5–10% in promotional costs — amounting to as much as 40% of order value. By making customers pay a small platform fee, delivery companies are seen to be moving towards a more sustainable revenue model.

Zomato and Swiggy did not respond to requests for comments till the time of going to the press.

 » Read More

Related Articles

GST 2.0: Insurance now tax-free, houses, cars and gadgets get cheaper – 10 big changes explained

To make India’s tax system simple and transparent, the government has announced historic reforms in the 56th GST Council meeting. The four tax slabs applicable till now have been reduced to only two major rates – 5% and 18%, while a special 40% slab has been introduced for luxury and harmful products or ‘sin goods’.

Kaynes Semicon to deliver first chip in October 

Kaynes Semicon, the semiconductor subsidiary of Kaynes Technology, is set to deliver its first chip from its outsourced semiconductor assembly and testing (OSAT) facility in Sanand, Gujarat, by the first week of October. The milestone comes less than 11 months after receiving approvals in September last year, reflecting one of the fastest execution timelines in

GST Rate Cut Impact: Top 7 Takeaway for Indian Investors

The overhaul of the GST rates is seen as the start of kick-starting the next wave of reforms in the country. The government seems to be in a clear overdrive to boost consumption and the overall economy. As the economy is looking at tackling the steep 50% Trump tariff that came into effect on August

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

GST 2.0: Insurance now tax-free, houses, cars and gadgets get cheaper – 10 big changes explained

To make India’s tax system simple and transparent, the government has announced historic reforms in the 56th GST Council meeting. The four tax slabs applicable till now have been reduced to only two major rates – 5% and 18%, while a special 40% slab has been introduced for luxury and harmful products or ‘sin goods’.

Kaynes Semicon to deliver first chip in October 

Kaynes Semicon, the semiconductor subsidiary of Kaynes Technology, is set to deliver its first chip from its outsourced semiconductor assembly and testing (OSAT) facility in Sanand, Gujarat, by the first week of October. The milestone comes less than 11 months after receiving approvals in September last year, reflecting one of the fastest execution timelines in

GST Rate Cut Impact: Top 7 Takeaway for Indian Investors

The overhaul of the GST rates is seen as the start of kick-starting the next wave of reforms in the country. The government seems to be in a clear overdrive to boost consumption and the overall economy. As the economy is looking at tackling the steep 50% Trump tariff that came into effect on August

Filing ITR for AY 2025-26? 5 free online tools to calculate tax liability

The last date for filing Income Tax Return (ITR) is 15th September 2025. If you have not calculated your tax till now, you can calculate your income tax liability. Most taxpayers find it difficult to assess their exact tax liability and deductions available to them. In such a situation, online tax calculators are the easiest

Zomato, Swiggy test higher platform fees in select cities

Food delivery majors Zomato and Swiggy have begun experimenting with higher platform fees in select markets, tweaking charges depending on demand patterns, according to industry sources. The flat Rs 10 levy that both have imposed since October 2024 is now being tested at Rs 12 for Zomato and Rs 12.70 for Swiggy in some locations.