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.

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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.

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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.

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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.

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