Swiggy Considers Doubling Platform Fee to Rs10 on Food Orders Ahead of IPO Plan

23 Jan 2024 , 10:59 AM

Swiggy is consideringthe to doubling platform fee on food orders from Rs 5 to Rs 10 in an effort to reduce losses before its upcoming public listing. Screenshots on the app reveal the potential fee increase, targeting select customers.

In April 2023, Swiggy initiated a platform fee experiment, initially charging Rs 2 on certain food orders, irrespective of cart size.

After testing, Swiggy implemented a platform fee for all customers, gradually increasing it to the current Rs 5. Some customers still pay Rs 3, but the company hasn’t clarified the tiering rationale.

Zomato has also raised its platform fee from Rs 2 to Rs 5 in some cases.

Additional fees on every order contribute to the financial well-being of food delivery companies, handling 1.5-2.5 million orders daily.

Swiggy contemplates a potential platform fee of Rs 10, but states it’s part of ongoing experiments. The company maintains it has no immediate plans for a significant increase.

Swiggy’s move aligns with the evolving food-delivery market, where co-founder Sriharsha Majety emphasizes Swiggy Instamart as the key growth driver.

Despite the focus on quick-commerce, Swiggy introduces budget-friendly food options, like Pockethero, to attract a broader customer base.

Swiggy’s IPO plans are in progress, as announced by CEO Sriharsha Majety, aiming for a market debut later in the year.

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