In a move that highlights the duopoly in India’s food delivery sector, Swiggy has raised its platform fee to Rs 15 per order, just a day after Zomato implemented a similar hike. This sudden increase has sparked discussions among restaurant owners, customers, and industry analysts.
1. Details of the Fee Hike
Swiggy’s platform fee has been increased from the previous rate to Rs 15 per order.
The hike comes shortly after Zomato raised its fee, raising concerns about market competition.
Both platforms claim the increase is necessary to sustain operations, improve delivery infrastructure, and enhance services.
2. Impact on Restaurants
Restaurants will have to bear higher commission costs, potentially reducing profit margins.
Some may adjust menu prices or delivery charges to compensate for the extra cost.
Smaller or local eateries may feel the financial strain more acutely compared to larger chains.
3. Impact on Customers
Increased fees may lead to higher overall delivery charges.
Frequent users might see a slight increase in total order cost, affecting consumer behavior.
Customers may explore alternative options like pickup or smaller order sizes to manage costs.
4. Industry Experts’ Views
Analysts say the duopoly in the food delivery market allows synchronized fee hikes, limiting options for restaurants.
Both platforms continue to dominate urban markets, giving them leverage over pricing and commission structures.
Experts warn of long-term implications on consumer trust and small restaurant profitability.
5. What This Means for the Food Delivery Market
Potential reduction in order frequency due to higher costs.
Restaurants may push for better commission agreements or partnerships.
The duopoly may face regulatory scrutiny if fee hikes continue without competition.
Conclusion:
Swiggy’s increase of the platform fee to Rs 15, following Zomato’s hike, underscores the challenges posed by a duopoly in India’s food delivery market. While the move may help sustain platform operations, it raises questions about restaurant margins, customer costs, and long-term market fairness.
FAQ :
Q1: How much is Swiggy’s new platform fee?
Swiggy has raised its platform fee to Rs 15 per order.
Q2: Why did Swiggy increase the fee?
The platform cites operational costs, infrastructure improvements, and service enhancements as reasons for the hike.
Q3: Did Zomato also increase its fees?
Yes, Zomato raised its platform fee just a day before Swiggy’s hike.
Q4: How will this affect restaurants?
Restaurants may face higher commission costs, potentially impacting their profit margins.
Q5: Will customers have to pay more?
Yes, delivery charges may increase, slightly raising the total cost of orders.
Published on : 3rd September
Published by : SMITA
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