Ellower Sunder, a resident of Coimbatore, engaged in a robust dialogue on the social media platform X. Sunder noted that he posted multiple screenshots of his food bills from Swiggy and the local restaurant.

The total cost of the food order from Swiggy was ₹1,473.While the same meal at a local a restaurant just 2 km away, was ₹810. An 81% cost increase. Sunder provoked Swiggy to explain $663 additional costs of takeout vs in-person dining. His X post, not long after it was posted, had over 2.1 million views.

Swiggy Prices Are Way More?
Sunder posted the comparison shots and showed the same prices at the same meal. He questioned if this was the true cost of convenience. Swiggy has issued similar complaints before. They stated that they are dependent on their restaurant partners who set the menu price on its app.

Swiggy prides themselves on transparency. Restaurants choose whether they are fans of allowing virtual guests to pay a different price than guests who dine-in.

Platform Fees Move-Up
Recently, Zomato and Swiggy pushed-up their platform fees. Swiggy has increased their platform fee three times in three weeks, and currently, Swiggy charges ₹15 per order all-included. Zomato have increased their charges by 20%, to ₹12 per order plus GST – and platform fee to help manage costs.

Given that it is festive season, it is exceptional demand. Swiggy has been dealing with approximately 20 lakh orders per day. and revenue from fees is approximately ₹3 crores. Zomato typically handles around 23-25 lakh orders per day and earns similar total revenue.

Delivery Apps Have Financial Problems
Both platforms are producing substantial revenue, on-track to financial growth. However, their quick commerce businesses are expensive, with services like Swiggy’s Instamart and Zomato’s Blinkit, which are resource intensive. For both companies, this reduces overall profits of quick commerce. The platform fees will help offset these losses.

What is a platform fee?

A platform fee is an extra charge for your bill. It appears as an extra charge in addition to food prices, delivery fees, and GST. It covers logistical and operational costs. It also improves gross margins for the business. For Swiggy and Zomato, they would also consider this as an important source of revenue. During festive times, platform fees will result in more profitable orders.

Customer Limitations

Sunder’s post highlights a growing concern. Thousands of customers feel the cost is too high for delivery apps even if the convenience is high. Despite the recent convenience, people are questioning the purpose. Swiggy and Zomato need to respond to this issue. Transparent pricing for final detached pricing may help Swiggy and Zomato rebuild trust with users.

Also Read: Watch YouTube Without Ads For Free: Just Do This Simple Trick

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