Boosting profits one order at a time – Swiggy and Zomato raise platform fee to Rs 6.

By JPROTOCOL on 17 Jul 2024

Swiggy and Zomato set to earn an extra around Rs 1.25-1.5 crore daily with new platform fee increase - securing their market dominance!

Swiggy and Zomato have decided to raise their platform fee to Rs 6 in order to enhance their profitability.

This increase, although seemingly small for customers, translates to a significant boost for Zomato, with an estimated additional income of Rs 25 lakh per day due to the high volume of orders they handle daily.

The platform fee, which is distinct from other charges such as delivery fee, taxes, restaurant fees, and handling charges, is currently being implemented in Bengaluru and Delhi.

This fee is applicable to all food orders, regardless of whether the customer is part of any loyalty or membership programs offered by the two companies.

The revenue generated from the increased platform fee directly contributes to the company's financial stability by helping to manage costs and increase overall revenues

As a result, Swiggy and Zomato are expected to collectively earn an additional Rs 1.25-1.5 crore per day through this fee, further solidifying their position in the food delivery market.

While the higher platform fee is currently being introduced in select cities, it is anticipated that this change will eventually be implemented nationwide.

This strategic move is aimed at ensuring the long-term sustainability and growth of these food delivery platforms, allowing them to continue providing efficient services to customers across the country.