‘Platform Fee’ on food delivery after recharges, bill payments: Why Swiggy, Zomato are going Paytm, PhonePe way

Food delivery platforms have become the latest in the line of prominent startup brands to experiment with 'platform fee'. Zomato followed its closest rival Swiggy to introduce a flat Rs 2 charge as platform fee in select geographies for some users. Swiggy made the 'platform fee' move back in April and now Zomato has followed suit.

While temporary as of now, a successful pilot could bring in the new charge across its markets. A Zomato spokesperson was quoted as saying that the move is in "experiment phase" at the moment and the company "may or may not scale".

The moves by Swiggy and Zomato come a year after leading payments platforms Paytm and PhonePe began levying platform fees on recharges and bill payments in 2022.

What’s behind ‘Platform Fee’ moves?

With large startups looking for ways to turn profitable, platform fee can prove to be an effective way to churn out greater revenue. It is interesting to note that Zomato only recently posted its first profitable quarter with Rs 2 crore profit.

As per analysts, it is not easy for food delivery firms like Zomato and Swiggy to increase revenue from commissions with eateries and restaurants reluctant to keep increasing the aggregator's share.