Swiggy’s new Rs 2 ‘platform fee’ on food delivery order irks users

Customers have expressed indignation over Swiggy’s new platform fee of Rs 2 on food delivery orders, which is imposed on all users regardless of cart value. Many Swiggy users took to Twitter to voice their complaints, with some claiming that the fee was also applicable in Chennai. The fee is currently being levied on users from Bengaluru and Hyderabad, but it is likely to be extended to other regions. Even Swiggy One subscribers, who do not have to pay a delivery fee, are required to pay the platform charge. According to a Swiggy representative on Twitter, the new charge is a flat fee to ensure the “upkeep” of the app, allowing them to continually improve and provide a seamless experience to customers. Sameer Arora, founder of Helios Capital, dubs the platform fee a “peace offering” to its Gurugram-based rival Zomato. The Bengaluru-based decacorn has reportedly advanced its timeline for achieving profitability on its food delivery and quick commerce businesses. Swiggy aims to generate additional cash through this new fee to redirect it to its core business. In its results, Swiggy had reported that its losses had widened 2.24 times to Rs 3,628.9 crore in FY22 from Rs 1,616.9 crore in FY21, fueled by a 227 per cent rise in costs. Expenses came in at Rs 9,748.7 crore in FY22, compared to Rs 4,292.8 crore in the year before, even as Swiggy raked in revenues of Rs 5,704.9 crore — a little over a two-fold jump from the previous financial year.