Swiggy and Zomato are facing criticism from users after increasing their platform fees. Initially, led by Deepinder Goyal, Zomato introduced a fee of Rs 2 per order, which has now risen to Rs 6. Following suit, Swiggy also raised its fees, aiming to improve profits in a competitive market. Despite their reputation for speedy food delivery, the recent fee hike has caused frustration among many, including Deepak Shenoy, CEO of Capitalmind. The Bengaluru-based entrepreneur stated that he has reduced his food orders from 12 times a week to just once, attributing this change primarily to the higher platform fees and his focus on healthier habits.
The CEO 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.” In a separate tweet, Shenoy added, “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.”
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.
— Deepak Shenoy (@deepakshenoy) July 15, 2024
Reacting to the post, a user commented, “Did a comparison last week. Ordering through Zomato 350Rs, just walking up to the Restaurant and Buying is 275 Rs.”
Another wrote, “Online food ordering is going to be the bane of the young and tailwinds for pharma and healthcare.”
“The biggest component is packaging charges in online orders,” a comment read.
Another wrote, “It started with Rs 2 a few months ago. Sure, they are growing like crazy today.”
An individual shared, “I’ve never been a fan of food companies’ business model or the idea of fast, unhealthy food.”
One more added, “I have observed the quality of the food that gets delivered is very bad compared to the same dish eaten fresh at the same restaurant.”
