2024-07-16 07:27:26
After mobile recharge, ordering food online has become expensive. Online food delivery apps Zomato and Swiggy have announced a 20 percent increase in their charges in Delhi and Bangalore. Earlier, telecom operators Jio, Airtel and Vodafone-Idea had put the burden of increase in Average Revenue per User (ARPU) on customers. In this too, the charges were increased by about 20 percent.
How much did the price increase
Zomato and Swiggy users will be charged Rs 6 as platform charge for every order in Delhi and Bangalore, which used to be Rs 5 earlier. Whereas, in Bangalore, Swiggy had earlier released a teaser of charging Rs 7 as platform fee, but after customers’ displeasure, Swiggy started charging Rs 6 as before. Let us tell you that the platform fee was introduced last year by both these online food ordering companies, which was initially kept at Rs 2 per order, which has been increased to Rs 6 in the last one year.
Who has how much market share
Just like Jio and Airtel have complete control over the telecom market, Swiggy and Zomato have complete control over the online food order sector. Zomato’s market share is around 55 percent, while Swiggy’s market share is around 44 percent. This means that these two companies have control over around 99 percent of the online food order market.
When was the price hike announced?
Online food ordering platforms Swiggy and Zomato have tried to increase rates several times. Earlier in January, Swiggy and Zomato increased the platform fee to Rs 10 for select users, which is much higher than Rs 3. However, users were never charged Rs 10. Users were shown a fee of Rs 10, but after the discount, Rs 5 was charged. Earlier in April, Swiggy and Zomato increased the fee from Rs 4 to Rs 5 per order in some markets.