Food delivery giants Zomato and Swiggy have recently increased their platform fees, impacting the cost of food deliveries in key cities. Here are the details:

• Platform Fee Hike: Both Zomato and Swiggy have raised their platform fees by 20% in select cities, specifically targeting markets like Delhi and Bengaluru. The fees have been hiked from ₹5 to ₹6 per order.
• Impact on Consumers: As a result of this fee increase, food delivery charges are likely to rise. Customers can expect costlier food deliveries due to the revised platform fees.
• Background: Zomato and Swiggy began charging platform fees only last year, starting with a ₹2 per order charge, which gradually increased to ₹4 and then ₹5 per order in larger markets like Delhi-NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow.
• Financial Implications: Zomato, handling around 2.2-2.5 million orders daily, could see an additional profit of ₹25 lakh per day due to the new platform fees. The companies expect a daily revenue of ₹1.25-1.5 crore from these changes.
• Stock Market Impact: Zomato’s shares hit an all-time high of ₹232 on the Bombay Stock Exchange following the fee hike, making founder and CEO Deepinder Goyal a billionaire. The company’s growth, especially through its quick commerce subsidiary, Blinkit, has contributed to this success.
• Other Players: Zomato’s Blinkit and Swiggy’s Instamart also charge platform fees. In Bengaluru, Blinkit charges ₹4 per order, while Instamart charges ₹5. In Delhi, Blinkit charges ₹16, and Instamart charges ₹5¹.

While the increased platform fee is likely to impact consumers’ wallets, the companies argue that it is necessary to sustain their services and maintain a high quality of experience.