After Zomato, Swiggy raises platform fee to ₹17.58 amid cost pressures

Swiggy has raised its platform fee to Rs 17.58, following Zomato's move, as rising costs and supply constraints in commercial LPG impact food delivery operations

Less than a week after food delivery firm Zomato raised its platform fee, rival Swiggy has also followed suit. While ordering food online on Swiggy, customers will experience a marginal rise in cost as the platform fee has increased from Rs 14.99 to Rs 17.58, a 17.2 per cent increase.

 

A platform fee is an additional charge levied by digital platforms, including food delivery apps, to cover operational costs, maintenance, and technology improvements.

 

In the case of Zomato, the platform fee was increased from Rs 12.50 to Rs 14.90, a 19.2 per cent hike. However, Swiggy’s platform fee includes the goods and services tax (GST) on the platform fee, while Zomato lists the GST on the platform fee separately. Combined with the platform fee and its associated GST, Swiggy’s total fee currently stands at Rs 17.58 and Zomato’s fee also equals exactly Rs 17.58.

   

While both platforms did not issue an official statement on the development, the fee hike is likely due to the West Asia crisis, which has triggered a crunch in the supply of commercial liquefied petroleum gas (LPG) cylinders. The shortage in the supply of cooking gas fuel has affected the operations of several restaurants listed on food delivery platforms and gig workers who enable doorstep delivery of food items ordered online.

 

Among the top three food delivery players, Magicpin is currently charging the lowest platform fee of Rs 14.2, which is also inclusive of GST.