Swiggy decision to raise its platform fee to Rs 10 per order aligns with Zomato similar move, reflecting the ongoing competitive landscape in the food delivery market during the festival season.
The food delivery market in India has become increasingly competitive in recent years, with Swiggy and Zomato being the main companies. They are both trying hard to get more customers by giving special deals and offers.
Swiggy and Zomato choice to increase their platform fee can be viewed as a plan to manage the higher expenses. That comes with the busy holiday season. By asking customers to pay more, these companies can make extra money to cover things like delivery costs, packaging, and advertising.
The increase in service fees probably won’t affect customers much, since the total cost of an order will still be quite reasonable. But, some customers might decide to use different delivery services or cook at home to save money.
Swiggy’s IPO Plans: Along with raising the platform fee, Swiggy is preparing for its first public offering (IPO). The company has recently increased the part of its IPO that offers new shares to Rs 5,000 crore. Showing strong interest from investors.
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