Now people will have to pay Rs 2 for ordering food from Swiggy. Online food delivery company Swiggy has now started charging 'Platform Fee' on every order. Currently, Swiggy users still pay delivery fees and taxes when they order food.
The company has taken this decision to increase its income and reduce the ever-increasing cost due to the slowdown in the delivery business. This fee was implemented last week. It was started from cities like Bangalore and Hyderabad. Now soon it will be implemented in other cities as well.
As per Money Control's report, the platform fee has been applied to food orders for the time being. This charge will not be applicable on grocery orders through Instamart. But, the customer of Swiggy One will have to pay this fee. Even though Rs 2 is very less, but this can increase Swiggy's income significantly. Because, on an average, more than 15 lakh orders are processed every day from the platform.
Earlier, Swiggy had laid off 380 employees in January 2023. Swiggy CEO Sriharsha Majety in an e-mail sent to the employees said that this is a very difficult decision taken after exploring all the available options. I apologise to all of you for going through this.
The company had completed its performance review in October 2022. After which all the employees were placed under the Performance Improvement Plan (PIP). According to sources, Swiggy employees are under a lot of work pressure as the management is reshuffling teams to get the numbers and positive unit economics factoring in ahead of the IPO launch.
Indian start-ups are eyeing a possible funding winter amid growing global uncertainties and fears of a recession. Brokerage firm Jefferies said in November that Swiggy was fast losing market share to its rival Zomato.
In the financial year 2022 (FY22), Swiggy's loss more than doubled to Rs 3,628.90 crore. According to Swiggy, the company has incurred this loss due to efforts to increase its gross revenue. Swiggy's gross revenue grew by 124% to Rs 5,705 crore in FY22. At the same time, the company's gross revenue in FY21 was Rs 2,547 crore.