Craving a late-night donut or planning a cozy Netflix and chill with your favorite snacks? If yes, brace yourself. The popular food delivery apps Swiggy and Zomato have raised their platform fees again, meaning ordering in is going to cost you more. Let’s break down what this means for your wallet and how these hikes have been rolling out.
Both Swiggy and Zomato have increased their platform fee, the extra charge they add on every order, simply for using their service. This fee is on top of the actual food cost, delivery charges, taxes, and other extras. Zomato has bumped its platform fee from ₹10 to ₹12 per order, a 20% hike, while Swiggy raised its fee from ₹12 to ₹14 per order, with some regions now seeing a further increase to ₹15. This is around a 16-25% increase, depending on the market.
Though these might look like small amounts, consider that they get added to every single order, every day. With millions of daily orders, it quickly adds up, hitting your pocket regularly.
What else adds to your bill?
If you don’t have premium subscriptions from these apps, you may also face Delivery fees ranging from ₹40-50 or higher, handling charges for packing and service, surge charges during peak times or high demand and GST on food and delivery charges. So, you end up paying more than what your food actually costs.
How much will this hurt your wallet?
Imagine you order food worth ₹500. Here’s how your bill might explode:
Platform fee: ₹14
Delivery fee: ₹50
Surge charge: ₹30
Taxes (GST etc.): extra on food + fees
So the total amount you end up paying comes around ₹619, roughly a 24% increase from the original food price.
The timing is no coincidence. Both platforms are preparing for the upcoming festive season, which typically brings a surge in orders. With more transactions and higher costs involved in logistics and operations, the companies are raising fees to increase profitability.
These fees help the platforms manage increased demand, offset losses, and fund innovations like faster deliveries or special offerings.
Swiggy first introduced a ₹2 platform fee in 2023, then steadily increased it over two years to ₹14, so a 600% increase in 2 years
Zomato also raised the fee multiple times since 2023, from a mere ₹2 initially to ₹12 now, a 500% increase till now
Food delivery convenience is still there, but at a growing price. If you crave frequent orders, consider subscribing to premium plans (Swiggy One, Zomato Pro) that offer delivery fee waivers and other perks. Or, get creative and try cooking at home sometimes; it might save you some money and calories!