📈 Platform Fee Increase
Zomato and Swiggy have raised their platform fees from ₹5 to ₹6, a 20% increase, effective July 14. This hike applies to Delhi and Bengaluru. Swiggy briefly tested a ₹7 fee in Bengaluru before adjusting it to ₹6. These platform fees are separate from other charges like GST, restaurant charges, and delivery fees. The increase helps boost revenue for these food delivery giants, who deliver about 20-25 lakh orders daily.
📅 History of Fee Hikes
Swiggy introduced platform fees in 2023, with Zomato following shortly after, starting with ₹2 per order. Zomato increased the fee to ₹3 in October 2023, ₹4 in January 2024, and ₹5 in April 2024. During peak hours, fees can reach ₹9 per order. Blinkit and Instamart, the quick commerce arms of Zomato and Swiggy, also charge platform fees.
💰 Revenue Impact
The recent fee hike will significantly increase the revenue of Zomato and Swiggy. With the new platform fee, they can earn an additional ₹1.25-1.5 crore daily. Both companies deliver around 20-25 lakh orders each day, making these small fee increments impactful on a large scale. This increase comes ahead of Swiggy's anticipated IPO.
📈 Zomato's Market Performance
Zomato's share price surged over 4% and reached a 52-week high after the fee increase announcement. The company's market capitalization has now reached ₹2 trillion. This rise reflects investor confidence in Zomato's growth potential, partly driven by the new platform fees. Deepinder Goyal, Zomato's CEO, has seen his wealth increase as the company's stock has jumped 83% year-to-date.
Do you think the platform fee hike is justified?
