Just before the festive season, major companies doing online food delivery have given a big shock to the customers. Zomato, Swiggy, and Magicpin have increased their platform fee, which will make ordering food across the country expensive.
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Swiggy and Zomato increased the platform charge
Swiggy has increased its platform fee to Rs 15, including GST, in some markets. At the same time, Zomato has increased this fee to Rs 12.50 (excluding GST). After these increases, customers’ pockets will be directly affected.
18% GST burden on the delivery charge
It is estimated that after the implementation of 18% GST on the delivery charge from September 22, customers will have to pay a higher price. There will be an additional burden of about Rs 2 on Zomato users and about Rs 2.6 on Swiggy customers.
Magicpin statement
Magicpin has fixed the platform fee at Rs 10 per order and claims that its consumers will not be affected by the new GST rules. The company says that they are already paying 18% GST, so the cost structure will not change.
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New revenue source for food delivery companies
In recent years, platform fees have become a major source of additional income for food delivery companies. This fee has been increased several times, raising questions about how affordable and convenient online food delivery will remain for customers.