Swiggy now charges its users Rs 2 per order, irrespective of the total value of their cart. The leading food ordering app waives the Rs 2 charge it describes as a “platform fee”, which is now applicable to food orders placed in the cities of Bengaluru and Hyderabad. This nominal charge is being levied only on food orders, which means you won’t have to shell out Rs 2 for orders from Swiggy Instamart and Genie – at least for now.
As informed of Swiggy’s new platform fee from Money Control is not visible to the users of Delhi and Mumbai. This is also apart from the handling fee that Swiggy charges for Instamart orders, even if you have a subscription to the company’s Swiggy One subscription.
Swiggy’s new platform fee may sound nominal, but, according to reports, it will help the company build a war chest that the leading food ordering platform can reinvest in the business. The new charges could help Swiggy become profitable again as its investors, including Prosus, can increase their control over the company’s overall spending.
After serving over 1.5 million orders per day, Swiggy hopes to bring its business back on track. It was among those companies that were forced to marginalize their workforce due to the economic downturn. Swiggy earlier this year cut 380 jobs in a company-wide announcement by its chief executive officer and co-founder Sriharsha Majety.
“The growth rate for food delivery has been slower than our projections (along with many peer companies globally)… while our cash reserves allow us to remain fundamentally well positioned for harsh weather conditions, We cannot make this a crutch and must continue to identify competencies. To secure our long term,” Majety told Swiggy employees in a long email.
Meanwhile, Swiggy’s rival Zomato has not taken such a step. At least for now, the other major online food-ordering app is focusing on expanding its offerings. It recently revamped its membership to offer benefits such as free delivery on minimum order value and discounts for dine-in at restaurants. Thus Zomato Pro Plus became Zomato Gold earlier this year.
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