Did SWIGGY increase their £ 12 to £ 14 platform fee? Report revealed ...

The Indian online ordering and delivery business SWIGGY has reportedly increased its £ 12 to £ 14 platform fee before the festive season. It was set for certain regions on August 15 amid increase in demand for orders; However, this will be reduced as soon as demand is delayed, the economic time reports. A platform fee is a levy that contributes to a company such as Swiggy, Zomato or Uber to each transaction to cover the cost of maintaining and managing its platform. The platform fee of RS14 per food delivery order is included from taxes on goods and services (GST), the ET report states. According to NDTV, it is reportedly a 600 percent increase in just over two years. In comparison, Zomato applies a £ 10 platform fee, excluding GST. Swiggy was the first to set this fee in April 2023, started with £ 2, and gradually increased it to £ 12 (pre-GST) as part of its strategy to strengthen profitability at the unit level. Zomato used a similar approach, although the most recent fee review took place in October 2024. While these fees represent a small part of the typical order value of £ 500 to 600 on food delivery platforms, it contributes significantly to improving the overall profit margins for the businesses. As it lowers investments in its Instamart vertical, Swiggy has reportedly increased its platform fee in the midst of increasing financial pressure. The move comes during a term characterized by a sharp increase in losses. In the April – June period, Swiggy’s net loss rose to £ 1,197 crore, doubling the figure from the same term last year. The company also reported a net cash outflow of £ 1,053 crore after accounting for the operating, investment and financing activities, the ET report states. Despite the deepening losses, Swiggy has a 54% growth in the year-on-year in operating income, reaching £ 4.961 crore. Rapidos offer a lower commission tariff to restaurant partners than swiggy, Zomato amid this, new competition comes in the food delivery space. The firm of Rapido Firm Rapido has introduced its own, its own food delivery platform, which is currently in operation in certain areas of Bengaluru, including Koramangala, HSR layout and BTM layout. The aim is to challenge established players such as Swiggy and Zomato by offering lower commission tariffs to restaurant partners between 8% and 15%, compared to the 16% to 30% usually charged by the incorporation. Zomato introduced five price increases in less than two years, resulting in a 400% surge, the NDTV report said. In the midst of the Swiggy-Zomato Duopoly, with commission fees reaching up to 35%, restaurant owners with little choice, but to raise their menu prices. As a result, several surveys indicate that ordering foods online now costs more than 50% more than eating at the restaurant, the report added. Livemint.com has reached out to swiggy for a statement. The story will be updated as soon as it is received.