Ordering food online will cost more now, as major food delivery platforms Swiggy and Zomato, have increased their platform/handling fees, eventually increasing the price of food deliveries. The charge of Zomato has raised from ₹5 to ₹6, marking a 20% rise in prominent markets like Bengaluru and Delhi. In the meantime, Swiggy, after raising its platform fee in specific cities, returned to charging ₹5 per order, in the same cities the next day. 

This move by the dominant companies is an effort to increase their revenue sources.  

Platform fees were initiated by both companies last year at ₹2 per order, which have incrementally risen since then. Zomato and Swiggy failed to comment or offer an explanation for the recent increase when asked to comment, eventually leading to a backlash from customers.  

How much do the platforms earn out of increased fees?  

According to a Business Standard report, Zomato may be able to make an extra ₹25 lakh a day since it processes approximately 2.2-2.5 million orders on daily basis. The report also states that because of the additional platform fees, both companies anticipate daily revenue ranging from ₹1.25 crore to ₹1.5 crore. 

Platform or Handling charges that Blinkit and Instamart charge 

According to a Times of India report, platform costs known as “handling charges” are levied by Zomato’s Blinkit and Swiggy’s Instamart. In Bengaluru, Blinkit charges ₹4 per order, whereas Instamart charges ₹5 for the same. But in Delhi, each order from Blinkit costs ₹16, while Instamart charges ₹5.  

Hiked prices led to backlash  

In addition to the increases in platform fees, certain customers have observed that pricing on Swiggy and Zomato is higher than those on restaurant menus. These observations have prompted some users to uninstall the apps and go out to eat instead.  

Deepak Shenoy, a stock market expert, said on X (formerly Twitter), “The increase of one-rupee is expected to contribute into a substantial sum for these platforms that manage millions of orders. Zomato alone recorded 647 million in 2023. On the contrary Swiggy, processes 1.4 million orders on daily basis” 

Expressing anger, an X user remarked, “Swiggy keeps on uplifting its platform price. It began at Rs 2 and has presently reached Rs 7 including GST. They impose fees on both the customer and the diner.”  

Despite the outrage from online users, the fee increase has sparked a positive response in the stock market, with Zomato’s shares surging to an all-time high.