The additional charge of Rs 2 per order, will remain the same irrespective of the order value and is initially being rolled out for users in Bengaluru and Hyderabad
Read More:– This Navratna PSU Stock Rallies 8% Today on Rs 121 cr Order Win; Should you Invest?
Online food delivery platform Swiggy has now started charging all users a “platform fee” of Rs 2 per food order in order to control its costs. The additional charge, which will remain the same irrespective of the order value, is initially being rolled out for customers in Bengaluru and Hyderabad.
Read More:- Real Estate: Office Space Absorption Rises 16% QoQ to 14 million Sqft in January-March 2023, Says Report
The charges have not become effective in cities like Delhi and Mumbai yet, as per a Moneycontrol report. The platform fee is over and above convenience/handling fees levied on users for food delivery, irrespective of whether they are Swiggy One customers or not. Platform fees are currently not applicable on Instamart deliveries.
The primary reason behind the move is the slowdown in the delivery business. “The company was no exception,” said Swiggy’s chief executive and co-founder Sriharsha Majety in an email to employees which mentioned the company slashing 380 jobs.
“The growth rate for food delivery has slowed down versus our projections (along with many peer companies globally)….While our cash reserves allow us to be fundamentally well positioned to weather harsh circumstances, we cannot make this a crutch and must continue identifying efficiencies to secure our long-term,” the email read.
