Swiggy starts charging customers 'platform fee' on food orders
In locations like Bengaluru and Hyderabad, the food and grocery delivery service Swiggy has begun charging customers a Rs 2 "platform fee" for each order of food. Customers of Swiggy One who pay in advance receive benefits including free delivery of food and groceries in addition to the platform cost, which is assessed in addition to the delivery fee. The platform cost will, however, also be applied to Swiggy One subscribers.
A Swiggy spokeswoman said, "The platform fee is a small flat price levied on food orders. "This fee helps us operate and enhance the features of our platform and app to provide a seamless app experience," the company claims.
The change occurs at a time when the growth of the meal delivery industry is essentially stagnant. In a January internal memo to staff, Swiggy co-founder Sriharsha Majety stated that the expansion of the food delivery firm had fallen short of expectations.
A individual with knowledge of the situation claims that Swiggy completes around 1.6 million orders daily. According to a March report from HSBC Global Research, competitor Zomato has begun regaining market share it lost to Swiggy in the second half of 2022 after the debut of its reward programme Zomato Gold. Zomato reportedly held 54% of the market in the quarter from October to December 2022, while Swiggy held 46%.
Rohit Kapoor, a former Oyo executive, is the CEO of Swiggy's meal delivery division. In August 2022, he assumed control as the marketplace's CEO. Additionally, Swiggy has been reducing costs everywhere, and this year it closed its meat delivery service and let go of about 380 workers. The corporation has also been investing more in its groceries and e-commerce operations. It just began testing Maxx, an online store featuring sections for stationery, pet supplies, household goods, and electronics.
"Maxx strives to be the go-to place for all of your family's shopping requirements, including one-hour delivery. In Bangalore, we are now implementing a pilot plan, the business said in a statement. Today, it offers a number of grocery delivery services, including Instamart, Insanely Good, and Handpicked.
Swiggy is observing adjustments at the top levels of leadership. Co-founder Phani Kishan will replace Karthik Gurumurthy, who now oversees the company's quick-commerce division. Dale Vaz, the organization's chief technology officer, is also going. Madhusudan Rao, the organization's senior vice-president of consumertech and fintech (engineering and product), will take over for Vaz, who joined Swiggy from Amazon in June 2018.
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