Ordering Food From Zomato, Swiggy Will Be Expensive This Diwali

Who would not want to make money during the festive season? From stores hanging the sale sign to vendors increasing prices of decor items, diya, and lights, the festive season is all about business and people splurging to enjoy this time of the year.

Following a similar business strategy, Zomato, India’s biggest food aggregator platform, has increased its platform fees from Rs 7 to Rs 10. The notification reads, “This fee helps us pay our bills to keep Zomato running. To maintain services during the festive rush, it has increased slightly.”

Zomato Increases Platform Fees During Diwali

Zomato, a Gurugram-based company, started as a platform with Rs 2 per order. This charge was nominal. Recently, it hiked it to Rs 7, not Rs 10. This charge is different from the distance fee, actual cost of the order, and delivery partner fee. 

For those who aren’t aware, the platform fee also comes with 18% GST as it is a part of the services that the company offers its customers. Hence, on every order you place on Zomato, you will be paying Rs 11.80 extra. Along with what the restaurant is charging for packaging with additional GST on packaging, the sum total of your order is going to be more than what you expect.

If you think that applying discounts to orders benefits you, take a closer look. These extra charges make up for the discount on the hiked price of dishes.

Swiggy Follows Zomato’s Footsteps

If you think you can switch from ordering on Zomato to Swiggy, you are in for a ride because the Bengaluru-based company has also increased its platform fee. “This fee helps us operate and improve our platform, delivering a seamless app experience,” reads the blurb when you click on platform fee.

Ahead of the reports on Swiggy introducing its IPO and Deepinder Goyal’s Zomato clocking 68% YOY growth in its revenue, a hike in platform fees is going to have a positive impact on these numbers. One might think that an increase in the fee will discourage users from using the platforms, but the comfort of receiving food at your doorstep trumps the extra payment of Rs 2-3.