July 15th 2024.
In recent news, food delivery giants Zomato and Swiggy have announced a hike in their platform fee. Customers will now be charged Rs 6 per order, a 20% increase from the previous fee of Rs 5. This change will be applicable in Delhi and Bengaluru, with plans to roll it out to other cities in the near future. It is important to note that this platform fee is separate from the delivery fee, goods and services tax, restaurant charges, and handling charges.
The reason behind this increase in platform fee is to help the food aggregators control costs and boost their revenues. This move comes just a few months after Zomato had raised its platform fee by 25% in April, bringing it to Rs 5 per order. This is not the first time Zomato has made changes to its platform fee. Last year, in August, they had introduced a fee of Rs 2, which was later increased to Rs 3, in an effort to improve their margins and achieve profitability.
By levying a platform fee, the food delivery platforms aim to generate a daily revenue of Rs 1.25-1.5 crore. This decision is a strategic move to help the companies stay afloat in today's competitive market. With the rise in demand for food delivery services, these platforms are constantly looking for ways to optimize their operations and increase their profits.
While this increase in platform fee may seem like an inconvenience to customers, it is a necessary step for these companies to sustain their business. With the ever-changing landscape of the food industry, it is crucial for them to adapt and adjust their fees accordingly. As customers, we can continue to support these platforms and enjoy the convenience of food delivery, while understanding the need for these changes.
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