Food Delivery Fees Rise: Zomato and Magicpin Respond

Food Delivery Fees Rise: Zomato and Magicpin Respond.webp

New Delhi, March 20 Food delivery aggregator Zomato has increased the platform fee it charges users by ₹2.40 to ₹14.90 per order, according to its app, on Friday.

Zomato's platform fee now stands at ₹14.90 on a pre-GST basis, from ₹12.50 previously.

Rival Swiggy has been charging a platform fee of ₹14.99 inclusive of GST from its users.

According to sources, the increase in platform fee is pan-India, across all markets where Zomato operates. It had last increased its platform fee in September last year.

Meanwhile, magicpin, the third-largest food delivery player, which currently charges a platform fee of ₹14.20 per order, has ruled out a hike at least for the time being.

Anshoo Sharma, CEO & Founder, magicpin, said, "At a time when the food delivery ecosystem is navigating a tough phase with rising costs, we have consciously decided not to increase our platform fee to support our restaurant partners and keep food delivery accessible for customers".

The latest hike in platform fees is set to make ordering food more expensive for millions of users across the country.

The increase in platform fees by Zomato comes at a time when crude oil prices are rising due to the West Asia conflict. Higher fuel costs are expected to drive up the cost of delivery operations.
 
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consumer prices cost of delivery crude oil prices digital economy food delivery food industry food ordering india magicpin platform fee pricing restaurant industry swiggy west asia conflict zomato
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