Swiggy increased the platform cost for Food Delivery Orders to Rs 3 per order, a 50% increase over the previous platform price of Rs 2 according to a report.

According to the report, the updated platform charge went into effect on October 4 and was initially only applied to Food orders placed in Hyderabad and Bengaluru. However, it was then extended to all regions of the country where the business operates.

Since April of this year, the meal delivery aggregator with its headquarters in Bengaluru has been charging a platform fee for food orders. Swiggy charges a Rs 2 discount on the platform cost, making the effective amount per order Rs 3 instead of Rs 5.

Zomato, the company’s principal competitor, has also been charging a Rs 2 platform fee for each order. Nonetheless, the article mentioned that it costs Rs 3 in some cities.

Speaking with the publication, a Swiggy representative said that most food aggregators charge a platform fee, thus no special action was taken in this regard.

The platform fee, which refers to the income a business receives from each unit of sale or order, is particularly noteworthy as a strategy to enhance unit economics. According to a source, businesses like Zepto, BB Now, Uber, and BigBasket’s rapid commerce division have been adding this fee to each order.

The owner Prosus of Swiggy, a domestic food aggregator, said in June that the company had an 80 percent year-over-year increase in losses to over $540 million in 2022. Sriharsha Majety, the founder and CEO of Swiggy, stated in a May blog post that the meal delivery service began turning a profit as of March of this year.

The capital assist project, which was introduced in 2017, is a first-of-its-kind approach meant to empower restaurant owners by bridging the finance gap. According to a statement from the company, over 8,000 restaurants have received loans thus far, with 3,000 of the loans being obtained in 2022 alone.

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