CosmicTaco

Customer Backlash Over Increased Platform Fees by Swiggy and Zomato

CosmicTaco · 2024-07-15T12:28:34.634361+05:30

- Swiggy and Zomato have raised platform fees to Rs 6 in key markets like Bengaluru and Delhi, up from Rs 5, marking a 20% hike. - Capitalmind CEO Deepak Shenoy has significantly reduced his orders due to the increased fees, highlighting a shift in customer behavior. - Customers are opting for direct restaurant orders to avoid the higher platform fees, with some even deleting the apps. - Both companies initially introduced platform fees at Rs 2 per order in 2023 and have gradually increased them to boost profitability. - The increased fees have led to a shift towards home-cooked meals and direct orders, impacting the revenue of these food delivery giants. Source: Deccan Chronicle

Swiggy and Zomato have raised platform fees to Rs 6 in key markets like Bengaluru and Delhi, up from Rs 5, marking a 20% hike.
Capitalmind CEO Deepak Shenoy has significantly reduced his orders due to the increased fees, highlighting a shift in customer behavior.
Customers are opting for direct restaurant orders to avoid the higher platform fees, with some even deleting the apps.
Both companies initially introduced platform fees at Rs 2 per order in 2023 and have gradually increased them to boost profitability.
The increased fees have led to a shift towards home-cooked meals and direct orders, impacting the revenue of these food delivery giants.

Source: Deccan Chronicle