Food Delivery War: After Zomato, Swiggy Increases Platform Fee by 17%; Check the New Charges Per Order:

In a move that is set to impact millions of daily food orderers, Swiggy has officially increased its mandatory platform fee. Following in the footsteps of its primary rival, Zomato, the food delivery giant has raised the fee from ₹6 to ₹7 per order, marking a significant 16.6% to 17% hike.

The "Platform Fee" Trend This increase comes just days after Zomato implemented a similar hike across major metropolitan hubs. The platform fee is a flat charge applied to every food order, regardless of the cart value or whether the user is a member of loyalty programs like 'Swiggy One' or 'Zomato Gold.'

Initially introduced at a nominal ₹2 in 2023, the platform fee has steadily climbed as both companies focus on achieving long-term profitability and offsetting rising operational costs.

Market Reaction: Shares on a Bull Run The stock market responded with high optimism to the news. Investors see the fee hike as a direct boost to the companies' bottom lines.

Swiggy Shares: Witnessed a sharp jump of nearly 5% during intraday trading.

Zomato Shares: Touched a fresh 52-week high, gaining over 3% as the market anticipates improved margins for both players.

Impact on Consumers and the Industry While the ₹1 increase might seem marginal at an individual level, it translates into massive incremental revenue for platforms processing millions of orders daily. Analysts suggest that this "duopoly" power allows both players to test price sensitivity without fearing a mass exodus of users, as options remains limited in the hyper-local delivery space.

As the competition shifts from customer acquisition to sustainable revenue, experts believe that "convenience fees" will become a permanent and evolving fixture of the digital economy in India.