Ahead of the festive season, Zomato, Swiggy, and magicpin have increased platform fees, making food delivery more expensive. Additionally, an 18% GST levy on delivery charges from September 22 will raise costs further. The hikes highlight rising costs in India's food delivery sector.
With the festive season fast approaching, leading food delivery giants Zomato, Swiggy, and magicpin have announced an increase in their platform fees. This move is set to make food delivery services costlier for millions of Indian consumers.
Additionally, an 18% Goods and Services Tax (GST) on delivery charges, effective from September 22, is forecasted to further elevate costs. For instance, Zomato users could see an additional Rs 2 per order, while Swiggy customers might incur an extra Rs 2.6 per order.
Despite inquiries, Swiggy and Zomato have yet to comment. Meanwhile, magicpin asserts that recent GST changes have no impact on their cost structure. Industry experts are closely monitoring these trends, as they raise concerns about the future affordability and convenience of food delivery in India.