New Delhi, Ahead of the festive season, a hike in platform fees by Zomato, Swiggy and Magicpin will make ordering food more expensive for millions of users across the country. The fee could go up further due to the imposition of 18 per cent GST on delivery charges from September 22.
Swiggy has raised its platform fee to Rs 15 including GST in select markets.
Rival Zomato has raised its platform fee to Rs 12.50 including GST, while third-largest food delivery company Magicpin has also raised its platform fee to Rs 10 per order, in line with broader industry trends, making food delivery costlier for consumers.
Estimates suggest that the 18 per cent GST to be levied on delivery charges from September 22 is expected to cost Zomato users an additional Rs 2 per order and Swiggy customers Rs 2.6.
Emails sent by PTI to Swiggy and Zomato did not elicit any response.
A Magicpin spokesperson told PTI that the company is already paying 18 per cent GST on its food delivery costs.
“The recent changes in GST do not impact our cost structure. Hence, consumers will not be impacted by the GST hike. Our platform fee will remain the same at Rs 10 per order, which is the lowest among leading food delivery companies,” the spokesperson further added.
Platform fees have emerged as an additional source of revenue for food delivery companies in recent times.
The simultaneous hikes by Zomato, Swiggy and Magicpin underline the trend of rising costs in India’s food delivery sector, raising questions about whether affordability and convenience can still go hand in hand for millions of customers.
