Foodtech giant Swiggy has started charging a platform fee of Rs 2 on all food orders in three cities. The move comes as the company seeks to boost its revenue and profitability. The platform fee will be charged on all orders, including those placed using Swiggy’s subscription service, Swiggy Super. The three cities where the fee is being implemented are Hyderabad, Delhi, and Kolkata.
The platform fee will help Swiggy generate more revenue and improve its bottom line, as the company continues to face stiff competition from other players in the food delivery market. However, it is also likely to lead to some pushback from customers, who may be unhappy about having to pay an additional fee.
Swiggy has been steadily expanding its services and offerings, with the aim of becoming a one-stop-shop for all food-related needs. The company has recently launched Swiggy Stores, a service that allows users to order groceries, fruits, and vegetables, among other things, from local stores. It has also introduced Swiggy Go, a hyperlocal delivery service that delivers anything from documents to laundry.
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Swiggy’s move to charge a platform fee is not unique in the industry, as other players such as Zomato and Uber Eats already charge similar fees. However, it remains to be seen whether Swiggy’s customers will accept the fee without complaint. Given the intense competition in the food delivery market.
The food delivery market in India has seen explosive growth in recent years, as more and more people turn to online platforms to order food. The market is expected to continue to grow rapidly in the coming years, as more players enter the market and existing players expand their services and offerings.
In this highly competitive market, Swiggy will need to continue to innovate and improve its services in order to stay ahead of the curve. The platform fee is just one of many strategies that the company will need to employ, in order to succeed in this dynamic and rapidly evolving industry.
