Food delivery platforms Zomato and Swiggy are likely to continue charging customers the increased platform fee of Rs 10 per order even after the festive season ends, sources aware of the matter told FE.
The platforms had raised their fees to Rs 10 in October 2024, citing increased demand during the festive period. The fee, which attracts an additional 18% GST, means customers currently pay Rs 11.8 on every order placed through the platforms. With both platforms delivering around 150,000-200,000 orders each per day and applying the fee uniformly to all customers—including premium subscribers of Zomato Gold and Swiggy One who enjoy free delivery benefits on minimum order values—it is seen as a significant push towards profitability.
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While the platform fee is borne directly by customers and not restaurants, the National Restaurant Association of India (NRAI) sees it as a positive development that could potentially ease the commission burden on restaurants. Pranav M Rungta, Vice President, NRAI, said aggregators should continue with the increased platform fee as this translates to reduced pressure through commissions on restaurants. The ideal way for a food delivery platform to earn is when the consumer is paying for that convenience. “In fact, we will only see this fee going up in the coming years, as users seem to have taken well to the idea of paying for convenience. Both platforms reported record number of orders this festive period, as compared to previous years,” Rungta said.
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Platform fees, which are charged separately from restaurant charges, delivery fees and GST, have seen progressive increases since their introduction.
Swiggy pioneered the concept in April 2023 with a modest Rs 2 fee, whilst Zomato followed suit in August 2023. Both platforms have since implemented multiple increases, with Swiggy implementing rises to Rs 5 in April and Rs 6 in July last year,
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