Swiggy, the popular food delivery platform, has started charging customers a 'platform fee' on their food orders. The move is part of the company's efforts to monetize its platform and generate more revenue.
The platform fee, which is currently set at 1.25% of the order value, is being applied to all orders placed through the Swiggy app or website. This fee is in addition to the delivery fee and other charges that customers already pay.
The company has stated that the platform fee will be used to cover operational costs such as technology, payments, and customer support. It will also be used to invest in new features and services for customers.
While the platform fee may seem like a small amount, it could add up for regular users of the platform. Some customers have already expressed their displeasure with the new fee, stating that it is unfair to charge customers for using the platform.
Swiggy, however, has defended the move, stating that it is necessary to ensure the long-term sustainability of the platform. The company has also stated that it is committed to providing customers with the best possible experience and that the platform fee will be used to improve the overall service.
The move by Swiggy is part of a broader trend in the food delivery industry, as platforms look for ways to generate more revenue and become profitable. Some platforms have introduced subscription-based models or other fees to generate more revenue from their customers.
Swiggy has been expanding its services and offerings in recent years, including launching a new grocery delivery service during the pandemic. The company has also been investing in technology and logistics to improve the delivery experience for customers.
Despite facing increased competition in the food delivery space, Swiggy remains one of the leading platforms in India. The company has raised significant funding in recent years and has a strong presence in many major cities across the country.
Overall, the introduction of the platform fee is likely to be a controversial move for Swiggy. While it may generate additional revenue for the company, it could also lead to a loss of customers who are unhappy with the new fee. The success of the move will depend on whether customers are willing to accept the fee as a necessary part of using the platform.
