Swiggy contemplates doubling platform fee: Reports

Money matters: Bengaluru-based food delivery quickcommerce unicorn Swiggy is testing to double its platform fee from Rs 5 to Rs 10 per food order, reports suggest.

Swiggy is bound for a public offering this year, with an aim to raise $500 million from the public markets.

Zomato, listed in 2021 and a direct rival to Swiggy, charges a Rs 3 platform fee per order. Some reports suggest Zomato has hiked its fee to as much as Rs 9 per order for some markets due to an incresed demand during the New Year celebrations. 

"Swiggy has not changed its platform fee, and has no plans for a significant increase in the near term. We're always running small experiments to better understand the consumer’s choices. This was one such experiment, and we may or may not scale it up in the future if it doesn't meet our goal of serving our users in the best way possible. We're always looking for ways to make our platform more affordable, and our latest offering, Pockethero, is another example of that. Pockethero is designed for budget-conscious consumers, and we're expanding it across the country right now."

As per reports, a small set of users will be affected by the price hike, double from its pre-existing fee. The company in April 2023 had introduced the platform fee for some customers, going on to roll it out for all customers. 

Swiggy began charging a platform fee at Rs 3, which was later increased to Rs 5 after it realised that the fee was not affecting the number of orders.

The move is also likely because the food-delivery market is experiencing slower growth. 

Founded in 2014, Swiggy has a valuation of $7.85 billion as on October 17, 2023 according to markets data platform Tracxn.

For its IPO process, the company is likely to have picked seven investment banks, including Kotak Mahindra Capital, Citi and JPMorgan, Bofa Securities, and Jefferies, among others.

(With agency inputs)