Online food ordering has become more expensive as India's two major food delivery platforms, Swiggy and Zomato, have decided to raise their platform fees. This hike comes ahead of the festive season. These platforms already charge users other fees, such as delivery charges, restaurant fees, and GST.
Zomato has increased its platform fee by Rs 2, bringing it to Rs 12, while Swiggy's has risen by Rs 3, making it Rs 15. Many users have already seen an increase in platform fees on their food orders. As these platforms process around 2 million orders a day, this fee increase will significantly boost their earnings.
For Swiggy, this marks the third platform fee increase in recent weeks. It had previously raised the fees during Independence Day before rolling them back to Rs 12. Zomato has been incrementally increasing its platform fees since introducing them in 2023.
New business models emerge
Meanwhile, Zomato is reportedly testing a new VIP Mode that offers priority deliveries and tailored services for a charge of Rs 50.
In a different development, a new food delivery service called Ownly has recently launched in Bengaluru and nearby areas. This platform aims to compete with Swiggy and Zomato by offering more affordable meals, with some items like rice and eggs priced at under Rs 100.
Ownly promises that its prices will be about 15 percent lower than what you'd pay on its competitors. It plans to keep things simple and transparent by charging restaurants a flat delivery fee. This means there will be no hidden costs like extra platform or packaging fees, making it easier for customers to enjoy budget-friendly meals.
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