Swiggy, Zomato may soon hike platform fee more to ₹10-15?
Restaurants anticipate platform fee hike up to ₹10-15 by Swiggy and Zomato amid rising operational costs.
Several restaurants listed on Swiggy and Zomato believe that the recent platform fee hike by online food aggregators will be further pushed to ₹10-15. This comes after Swiggy and Zomato increased their platform fees by 20 per cent from ₹5 to ₹6 earlier this week. Owing to this, the food delivery platforms will be able to increase their margins amid rising operational costs.
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But Business Standard reported citing many restaurants that the platform fee will rise up to ₹10-15 in the near future. The restaurants also asked for the high commissions charged by the food delivery platforms to be slashed, they said, with one informing as per the outlet, “The platform fee is definitely going to increase further, in line with where the global markets are."
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The platform fee is similar to the cost of shopping on these platforms and is a way in which the companies directly make money from users. This is because every time a person orders food from Zomato or Swiggy, platform fee is levied on the order.
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Owing to high commissions charged by delivery companies, restaurants often have inflated prices for the same food items in their menu on the food delivery platforms. This results in food being more expensive on these apps than it would be if you visit the restaurant.
The move to hike platform fees comes as both the food delivery giants look to improve their unit economics more and give an overall boost to their revenues and profits.
