Business

Zomato And Swiggy Hike Fees During Festive Rush: What’s Behind The Price Surge?

As the festive season begins, food delivery giants Zomato and Swiggy have quietly raised their platform fees, leaving consumers to bear additional costs when placing orders. Zomato has increased its platform fee from Rs 6 to Rs 10 per order, while Swiggy followed with a hike from Rs 7 to Rs 10. This fee, added to restaurant costs, GST, and delivery charges, has triggered frustration among users, especially on social media.

Zomato and Swiggy Raise Platform Fees

Zomato’s recent price hike marks the latest increase in its platform fee, which was first introduced in 2023 at Rs 2 per order. In a statement, Zomato justified the increase by saying, “This fee helps us pay our bills to keep Zomato running. To maintain services during the festive season, it has increased slightly.” This surge, seen as necessary to manage operational costs during the Diwali rush, has sparked public backlash.

Meanwhile, Swiggy, which implemented a similar fee structure in 2023, has yet to comment on whether the hike is temporary or permanent. Swiggy users remain unclear about whether the charges are a seasonal adjustment or a long-term change. Without official communication from Swiggy, users are left to speculate about the motive and duration of these new charges.

Social Media Outrage Over Price Hikes

As soon as the fee hike was introduced, it set off a wave of outrage on social media platforms. Users criticized both companies for adding more fees on top of GST, delivery charges, and restaurant fees, claiming these platforms are becoming too expensive for consumers.

One user on X wrote, “Food delivery was once about convenience, now it’s layered with fees such as GST, delivery, packing and platform charges. As competition shrinks, consumers pay the price. Monopoly at work?”

Another user vented, “Not going to order from any of these sites anymore. I will not give them my hard-earned money for their gains.”

A third comment suggested a shift in consumer behavior: “Stop ordering on @zomato and Swiggy. Start eating at home or dine out when necessary if charges are not worth it.”

Criticism also extended to Zomato’s and Swiggy’s premium subscription services, with one user asking, “What are these Zomato Gold and Swiggy Golds for? Not taking any delivery fee but platform fee is constant.” Another person shared their experience, saying, “I bought pizza today, and they added Rs10 in the name of festive season charges.”

Consumer Backlash and Future Impact

Both Zomato and Swiggy are facing growing criticism as users express their dissatisfaction with the rising costs of online food delivery. As platform fees climb alongside restaurant prices and other service charges, many customers are reconsidering their options. The festive season, which is typically a time of higher demand for food delivery, may see a shift as consumers opt to dine out or cook at home to avoid the growing list of charges.

Without clear communication from Swiggy regarding the permanence of these new fees, and with Zomato citing operational costs as the reason behind its hike, the future remains uncertain for the online food delivery industry. Both companies risk losing customer loyalty as consumers call for more transparency and fairness in pricing.

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Lavanya R

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