Swiggy, an online food delivery service, has raised the platform cost for food orders from Rs 2 to Rs 3. This growth occurs as the business works to raise its profitability.
According to a Swiggy spokesman, the platform fee is a standard practice across industries and is charged by the majority of service providers. The spokesperson added that in most of the cities where Swiggy operates, the platform charge is now Rs 3.
Swiggy charges its consumers a platform fee for using its platform to place food orders. No matter how much food is ordered, the fee is always charged.
Given that there is only a one rupee increase in the platform price, customers should not notice much of a difference. It is crucial to keep in mind that in addition to this increase, Swiggy also charges a delivery fee and a service cost.
Customers who feel that the platform fee hike places an unwarranted burden on them have voiced their displeasure with it. The hike, however, has been defended by Swiggy, who claims that it is required to pay running expenses for the platform.
It’s vital to remember that only Swiggy’s meal delivery service is subject to the platform fee. It does not apply to orders placed through Swiggy’s rapid commerce service, Instamart.
Analysis
The platform fee’s increase indicates that Swiggy is under pressure to raise its profitability. The company has been struggling as a result of the rising cost of living as well as fierce competition from its rival Zomato.
consumers are probably not significantly affected by the platform price rise, although some consumers may decide to use other food delivery services as a result. Swiggy must strike a compromise between the need to maintain its consumer base and the requirement to increase profitability.
How can consumers help?
Customers might choose to use other food delivery platforms if they are dissatisfied with the rise in the platform cost. Other food delivery services like Zomato, Uber Eats, and DoorDash are accessible in India.
Customers can also decide to place a direct order for meals from eateries. Today, a lot of eateries either provide their own delivery services or work with outside delivery firms like Dunzo and Zepto.
Finally, clients have the option to cook more frequently at home. This is both the most economical and healthy method of obtaining food.
