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Foodtech platforms Swiggy and Zomato have hiked platform fees by 20% to Rs 6 in high traction markets including Bengaluru and NCR to improve their bottom lines. 

Shares of Deepinder Goyal-led Zomato opened higher and rose 2.44% to Rs 227.9 a piece during the late hours of morning trade. Zomato recently increased its platform fee to Rs 5 per order from Rs 4 in key markets including the National Capital Region, Bengaluru, Mumbai, and Hyderabad. 

Swiggy and Zomato did not respond to queries sent by Yourstory. 

Both companies launched a platform fee of Rs 2 last year as the company focused on profitability along with growth and penetration and has increased it gradually. Platform fees are a way for companies to improve their bottom line by raising the amount of money they make on every transaction. With only two players in the game, IPO-bound Swiggy and its listed peer Zomato focus on improving their take rates. 

These platforms were previously charging Rs 5 per transaction, which is still the case for some transactions on Swiggy. However, Sriharsha Majety-led Swiggy is even hinting at a higher fee by displaying it as Rs 7 and striking it off to Rs 6 on every transaction. 

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Their quick commerce arms, Blinkit and Instamart also charge an equivalent of a platform fee under the name handling charges. The platforms also add high surge fees and rain fees for some orders.  Zomato’s Blinkit charges handling charges of Rs 4 on every order on top of a delivery fee of Rs 16 or Rs 30 based on cart value.

Swiggy’s Instamart charges a handling fee, which is marked as being inclusive of GST, of Rs 5 on every transaction. Their quick commerce competitor Zepto charges a handling charge of Rs 9.99 on every order on top of GST which is added to the cart total. 

Zomato finished the previous quarter with a profit of Rs 175 crore. At the same time, Swiggy, which has confidentiality filed for IPO with SEBI, is focusing on retaining positive investor sentiment with its profitability efforts.