Swiggy is reportedly charging a ‘platform fee’ of ₹2 per order, irrespective of the order’s total value, with the move coming as a part of the company’s measures to control its costs.
According to Moneycontrol, which reported the development, the primary reason behind levying pthe latform fee is the ‘slowdown’ in the delivery business.
“Swiggy was no exception…the growth rate for food delivery has slowed down versus our projections. 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 reported quoted co-founder Sriharsha Majesty as saying in an email to employees.
The email, as per Moneycontrol, also mentioned the food delivery platform will slash as many as 380 jobs.
Here is all you need to know:
(1.) For now, the fee is being charged only for orders in Bengaluru, where the company is headquartered. In other regions, including Delhi and Mumbai, it is likely to be introduced soon.
(2.) Also, it is being levied only for food orders, and is yet to be implemented for e-commerce, or for Instamart, the branding under which Swiggy provides on-demand grocery deliveries.
(3.) The additional charge, rolled out over the past few weeks, is different from the handling fees levied on Instamart.
(4.) Though ₹2 seem very small, analysts say it would create a large enough corpus for Swiggy to reinvest back into its business, even as it delivers 1.5 million orders each day.
(5.) Said a company spokesperson: “The platform fee is a nominal, flat charge on food orders. It helps us operate and improve our platform, and enhance app features to deliver a seamless app experience.”
