Food delivery platforms are the latest famous startup company to experiment with a “platform fee.” Zomato, like its closest rival Swiggy, introduced a flat Rs 2 platform fee for some users in specific locations. Swiggy pioneered the ‘platform fee’ concept in April, and Zomato has now followed suit.
While only temporary for the time being, a successful pilot could spread the new charge throughout its markets. According to a Zomato spokesman, the move is now in “experiment phase” and the firm “may or may not scale.”
Swiggy and Zomato’s initiatives come a year after prominent payment platforms Paytm and PhonePe started charging platform fees on recharges and bill payments in 2022.
What is driving the ‘Platform Fee’ movement?
With major startups seeking for methods to become successful, platform fees might be an effective strategy to generate more money. It’s worth noting that Zomato only recently reported its first successful quarter, with a profit of Rs. 2 Crore.
According to analysts, it is difficult for food delivery companies like Zomato and Swiggy to increase revenue from commissions because eateries and restaurants are hesitant to continue expanding the aggregator’s stake.