Swiggy and Zomato Face User Backlash Over Platform Fee Hike

Food delivery giants Swiggy and Zomato are currently under fire from users after both companies decided to raise their platform fees. Initially, Zomato, led by Deepinder Goyal, introduced a modest fee of Rs 2 per order. However, this fee has now tripled to Rs 6. Following Zomato’s lead, Swiggy also increased their fees in a bid to enhance profits in a fiercely competitive market. While these apps are known for their convenience and speedy deliveries, the recent fee hikes have left many customers disgruntled, including Bengaluru-based entrepreneur and Capitalmind CEO, Deepak Shenoy.

Shenoy, who used to order food 12 times a week, has drastically cut down his usage to just once a week. He cites the higher platform fee as the primary reason for this change, coupled with his new focus on healthier habits. In a tweet, Shenoy wrote, “Massively reduced ordering from Swiggy/Zomato, down to just once maybe on a weekend, like today and noticed their ‘platform’ charge is now Rs 6. Happy that I weaned myself off the daily ordering. They also take 30% from restaurants, btw.” He further commented, “Happy to learn, from media sources, that I have reduced this ordering because of a move of platform fee from Rs 5 to Rs 6. Yes, that’s what caused it. I moved for health reasons, to a much more costly alternative, but it’s way way healthier.”

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The increase in platform fees has sparked a wave of reactions from other users as well. One user noted, “Did a comparison last week. Ordering through Zomato 350Rs, just walking up to the restaurant and buying is 275 Rs.” Another remarked, “Online food ordering is going to be the bane of the young and tailwinds for pharma and healthcare.” Some users pointed out that the biggest cost component in online orders is the packaging charges, while others expressed their long-standing skepticism about the business model of food delivery companies and the quality of food delivered compared to dining in.

Despite the backlash, Zomato’s founder and CEO, Deepinder Goyal, has seen a significant financial upturn. At 41, Goyal has become a billionaire following a substantial increase in his company’s stock price. According to Forbes, Goyal holds approximately Rs 36.95 crore shares of Zomato, equating to about 4.24% ownership. The surge in share price has boosted his net worth by over Rs 8,424 crore, cementing his status as a billionaire.

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