IPO-bound food and grocery delivery app Swiggy is set to increase the platform fee on orders, from Rs 5 to Rs 10.
According to media reports, the company has already begun teasing the doubled platform fee for select customers. This is part of the Bengaluru-based firm's attempts to boost revenue from orders.
According to an Economic Times report, the app had shown the increased platform fee for certain users; but they were only charged half the amount after a discount.
“We are always running small experiments to better understand the consumer’s choices. This was one such experiment,” a company spokesperson has been quoted as saying. The spokesperson clarified that Swiggy has no plans to significantly increase platform fee in the near future.
"...we may or may not scale it up in the future if it doesn't meet our goal of serving our users in the best way possible,” Moneycontrol quoted a spokesperson as saying.
Swiggy began charging platform fee in April 2023. Initially, the fee was Rs 3, which was later increased to Rs 5 after the company realized that the fee did not affect the number of orders.
Swiggy's rival Zomato too charges a platform fee of Rs 3 per order. According to reports, Zomato had hiked the fee as much as Rs 9 per order in some markets owing to incresed demand during the New Year celebrations.
