Customers of Swiggy and Zomato should know that these companies have increased their platform fees, making online food orders more expensive.
Both companies announced the fee hike, which raises the platform fee by 20%.
Previously, the fee was Rs 5, but it has now increased to Rs 6.
This platform fee was first introduced last year.
Importance of Platform Fees
Platform fees are charged to boost the companies’ overall revenue and profit.
In January, Swiggy increased its platform fee to Rs 10 for some users, while others were charged Rs 7.
However, at the time of final payment, all users were charged Rs 5.
The platform fees help companies like Swiggy and Zomato sustain their services and grow their profits.
Why Platform Fees Are Important
Platform fees are essential for companies to boost their overall revenue and profit.
Earlier this year, Swiggy had different platform fees for some users, charging Rs 10 for some and Rs 7 for others.
However, all users were eventually charged Rs 5 at the final payment stage.
Deepak Shenoy, CEO of Capital Mind, shared his thoughts on the increase.
He mentioned in an X post that he has stopped using Swiggy and Zomato and feels happy about his decision.
Massively reduced ordering from Swiggy/Zomato, down to just once maybe on a weekend, like today and noticed their "platform" charge is now Rs. 6
Happy that I weaned myself off the daily ordering. They also take 30% from restaurants, btw.
— Deepak Shenoy (@deepakshenoy) July 13, 2024
CEO’s Reaction and Zomato Share Update
Deepak Shenoy, CEO of Capital Mind, commented on the fee increase.
He mentioned in a post on X (formerly Twitter) that he has stopped using Swiggy and Zomato and is content with his decision.
Meanwhile, Zomato’s shares are performing well.
On July 15, the shares rose by 3%, reaching Rs 232 per share.
This increase pushed Zomato’s market capitalization to over Rs 2 trillion (Rs 2,00,990.46).
According to Forbes’ Real Time Billionaire Index, Zomato founder and CEO Dipinder Goyal’s net worth is now $1.4 billion, placing him at 2173rd in the list of the world’s richest people.
