Prahlad Rawat
Swiggy and Zomato Hike Platform Fees to Boost Bottomline
In a move aimed at improving their financial performance, leading food delivery platforms Swiggy and Zomato have announced a hike in their platform fees. The new fees, whih now stand at Rs 6 in certain areas, come as the companies strive to find a balance between profitability and maintaining their market share.
The platform fee, also known as the delivery fee, is the amount charged to customers for the convenience of food delivery. Last year, both Swiggy and Zomato had launched their services with a platform fee of just Rs 2, in an effort to attract and retain customers. However, the companies have now decided to increase this fee to Rs 6 in select regions.
The decision to hike the platform fee is a strategic one, as Swiggy and Zomato work towards achieving profitability. The food delivery industry, while experiencing rapid growth, has also been grappling with significant operational costs and challenges in achieving sustained profitability.
“The increase in platform fees is a necessary step to improve the bottomline of the businesses,” said an industry expert. “While customers may initially see it as an added burden, the companies are trying to strike a balance between maintaining their market share and ensuring the long-term viability of their operations.”
The move comes at a time when both Swiggy and Zomato have been focusing on streamlining their operations and exploring new revenue streams. Earlier this year, Swiggy announced the launch of its grocery delivery service, Swiggy Instamart, while Zomato has been expanding its presence in the quick-commerce space.
“The platform fee hike is part of a broader strategy to improve the overall profitability of the business,” said a spokesperson for one of the companies. “We are committed to providing our customers with the best possible experience, and this adjustment will help us continue to invest in improving our services and expanding our offerings.”
As the food delivery sector continues to evolve, customers can expect to see more strategic moves from Swiggy and Zomato as they navigate the challenges of the market and strive to become sustainable and profitable businesses.
Pooja Negi
