Online customer disputes 81% price hike in Swiggy order, igniting a conversation about the costs of online food delivery services
In a move that has raised eyebrows among consumers, food delivery platforms Swiggy and Zomato have increased their platform fees in select markets. The hike comes as consumers grow increasingly vocal about the widening gap between restaurant and app prices.
The comparison of prices between ordering food at a restaurant and through the apps has been a hot topic on social media. A viral post on Sunday showcased an 81% price increase on Swiggy for a meal from McDonald's, with the final restaurant bill coming to Rs 810 (inclusive of GST) compared to Rs 1,473 on Swiggy.
For instance, a plate of Chicken Lollipop cost Rs 200 at the restaurant but Rs 320 on Swiggy. Similarly, Chicken 65 was priced at Rs 150 at the restaurant, against Rs 240 on Swiggy. The price discrepancy was even more noticeable for dishes like Chicken Thokku Biriyani, billed at Rs 280 in person and Rs 460 online.
The debate over the economics of food delivery continues, as platforms continue to hike their fees. Swiggy has increased its platform fee to Rs 15 (inclusive of GST), while Zomato's fee has been raised to Rs 12.50 per order (exclusive of GST).
This price hike comes amidst the announcement of a new tax, with the Goods and Services Tax (GST) set to be levied on delivery charges from September 22. This new tax is estimated to add about Rs 2 per order for Zomato users and Rs 2.6 for Swiggy customers.
The post drew a range of reactions, with some users stating that such discrepancies are common and others arguing that an 80% hike is excessive. Some users defended the practice as the cost of convenience, stating that they want the safety, delivery on time, customer service, and variety offered by the apps.
It's important to note that the name of the restaurant with prices increased by 81% compared to Swiggy is McDonald's. Other restaurants may not see such a significant price difference, and the pricing practices vary across different establishments.
Magicpin, the third-largest player, has kept fees at Rs 10 per order, offering a more affordable alternative for cost-conscious consumers.
Platform fees and mark-ups have become an important revenue stream for delivery companies. The strategy of hiking fees around festive seasons and retaining them later has already been tested by Zomato since last year.
As consumers continue to voice their concerns, the pricing practices of food delivery platforms are set to face closer scrutiny. The question remains whether the convenience offered by these apps justifies the increased costs for customers.
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