Food delivery company Swiggy has increased its platform fees to Rs 15 in some cities. Earlier this fee was Rs 12, which was increased to Rs 14 in August 2024. Now it has been increased by another rupee. This change has been made in those areas where the demand for orders is increasing rapidly. This fee of Rs 15 includes GST (Goods and Services Tax).
Along with Swiggy, its rival company Zomato also increased its platform fees from Rs 10 to Rs 12 on Tuesday. This fee is exclusive of GST. This step has been taken in anticipation of increase in demand during the festive season.
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The series started in 2023
Swiggy first introduced a platform fee of Rs 2 in April 2023. Gradually it was increased to Rs 12. Zomato also changed its fees last year in October 2024. This fee may seem small, but with an average order value of Rs 500-600, it helps companies increase profits.
net loss doubled
Swiggy has not made any official comment on the increase in this fee. The company’s net loss in the April-June quarter doubled to Rs 1,197 crore compared to last year. This loss was due to increased investment in its quick-commerce service Instamart.
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During this period, Swiggy’s operational revenue increased by 54% to Rs 4,961 crore, while cash outflow after operations, investment and financing activities stood at Rs 1,053 crore. This fee increase may be a bit expensive for customers, but for companies it is a way to strengthen their business.
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