Swiggy to apply additional Rs 2 fee on each order due to slowed food delivery business

Food delivery platform Swiggy has reportedly introduced a platform fee of 2 rupees per order in its headquarters in Bengaluru, as part of a cost-cutting measure following a downtrend in the delivery business. Swiggy co-founder Sriharsha Majesty noted in an email to employees that the fee is meant to help the company identify efficiencies to secure its long-term future.

“Swiggy was no exception…the business for food delivery is seeing a downtrend versus our projections. While our cash reserves allow us to be fundamentally well positioned to fight back difficult times, we cannot make this the only support and must continue to identify efficient ways to secure our long-term,” the report quoted co-founder Sriharsha Majesty as saying in an email to employees.

The fee currently only applies to food orders and has not yet been introduced in other locations including Delhi and Mumbai, or Instamart, Swiggy’s e-commerce and on-demand grocery delivery brand. A company spokesperson said the platform fee is a nominal flat fee that helps Swiggy operate and improve the platform for a smooth app experience and enhance app features. It seems like a small amount, but given that it ships 1.5 million orders every day, the fees are expected to create a significant corpus that Swiggy can reinvest in its business.