Swiggy hikes platform fee to ₹14 in some regions amid festive season: Reports
The festive season is in full swing, and with it comes a surge in demand for food delivery services. To capitalize on this trend, Swiggy, one of India’s leading food delivery companies, has reportedly hiked its platform fee to ₹14 in some regions. This move is aimed at boosting profitability during the peak festive season, according to multiple reports.
The platform fee, which was introduced by Swiggy in 2023, was initially set at ₹2. With this latest hike, the fee has increased by a whopping 600% so far. The hike is reportedly temporary in nature, and Swiggy is expected to revert to its previous platform fee once the festive season comes to an end.
Swiggy’s decision to hike its platform fee comes as no surprise, given the massive surge in order volumes during the festive season. The company has been working hard to meet the increasing demand, and this move is likely aimed at ensuring that it can maintain its profitability margins during this period.
The platform fee is a percentage of the order value that Swiggy charges its restaurant partners for using its platform. The fee is typically deducted from the restaurant’s earnings, and it helps Swiggy to maintain its operations and invest in its business.
The hike in platform fee is likely to have a minimal impact on Swiggy’s restaurant partners, as the company has reportedly assured them that the increase will be temporary. Moreover, the platform fee is a small percentage of the overall order value, and restaurants are unlikely to feel the pinch too much.
Swiggy’s move to hike its platform fee during the festive season is a strategic one, as it allows the company to capitalize on the surge in demand and maintain its profitability margins. The company is likely to use the additional revenue generated from the platform fee to invest in its business, improve its operations, and expand its offerings.
In recent years, Swiggy has been aggressively expanding its services, including the introduction of new features such as Swiggy Instamart, which allows customers to order groceries and other essentials online. The company has also been investing heavily in its logistics and supply chain management to ensure that it can meet the increasing demand for its services.
The hike in platform fee is not the only move that Swiggy has made to capitalize on the festive season. The company has also introduced a range of new features and promotions to attract customers and drive sales. These include special discounts, offers, and loyalty programs that reward customers for repeat orders.
Swiggy’s competitors, including Zomato and Foodpanda, are also expected to follow suit and hike their platform fees to capitalize on the festive season. The competition in the food delivery space is fierce, and companies are constantly looking for ways to stay ahead of the curve and increase their revenue.
In conclusion, Swiggy’s decision to hike its platform fee to ₹14 in some regions amid the festive season is a strategic move aimed at boosting profitability during the peak period. The increase is likely to have a minimal impact on Swiggy’s restaurant partners and is expected to be temporary in nature. As the festive season comes to an end, Swiggy is likely to revert to its previous platform fee, and the company will continue to focus on expanding its services and improving its operations.
