Swiggy is also currently teasing a platform fee of Rs 7 in Bengaluru, which has been struck off and discounted to Rs 6. This is not the first time the two companies have hiked their platform fees, which they introduced last year.
Both platforms had started with a fee of Rs 2 per order, but increased them through the months.
Platform fees are essential to delivery firms as they look to improve their take rates, which determine the amount of money the firms make on every order. With a duopoly in place, both Zomato and Swiggy have been experimenting with increased platform fees to boost their overall revenues and profits.
Both Zomato and Swiggy did not respond to requests for comment as of press time.
In January, Swiggy had showcased a platform fee of Rs 10 to select users, sharply higher than the Rs 3 it was charging many users at that time. The Rs 10 fee wasn’t actually charged to the users, but teased during checkout where they were shown the higher fee and then charged Rs 5 after a discount.
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In April, Zomato increased its platform fee by 25% to Rs 5 per order in key markets including the National Capital Region, Bengaluru, Mumbai, Hyderabad and Lucknow.Charging higher platform fees is one of the ways in which such firms are trying to increase their profitability, with advertising income being another route. This assumes significance as platforms, particularly those engaged in food delivery, are finding it difficult to increase commissions that they charge restaurants without attracting their ire.
The quick commerce arms run by Zomato and Swiggy, namely Blinkit and Instamart, also charge an equivalent fee called handling charges. In Bengaluru, Blinkit charges Rs 4 per order in handling charges, while Swiggy Instamart charges Rs 5 per order.
