Swiggy, the popular Indian food delivery platform, has sparked user concerns by testing a potential doubling of its platform fee from ₹5 to ₹10 per order. This move comes as the company gears up for its much-anticipated initial public offering (IPO) later this year, and is seen as a possible attempt to improve its financial performance before going public.
Teasing the Increase:
While Swiggy has officially denied plans for a significant fee hike in the near future, screenshots circulating online show the platform suggesting the ₹10 fee to a "small set" of users. This echoes a similar strategy used in April 2023, when Swiggy introduced a ₹2 platform fee for select customers before gradually rolling it out to all users and raising it to the current ₹5.
Financial Maneuvers:
Swiggy has faced criticism for its heavy reliance on discounts and promotions, leading to persistent losses. The potential fee increase is seen as a way to boost revenue and potentially offset these losses. However, analysts warn that such a move could backfire, alienating price-sensitive customers and impacting order volumes.
User Reactions
Social media has been abuzz with reactions to the news, with many users expressing disapproval of the possible hike. Concerns range from increased overall order costs to the potential impact on smaller restaurants and delivery partners.
Uncertain future:
While Swiggy maintains that the ₹10 fee is just an experiment, the company's financial situation and upcoming IPO plans suggest it might be seriously considering the fee increase. It remains to be seen whether the company will go ahead with the full implementation, and if so, how users will respond.
