E-commerce and Food Delivery Platform Fees in India

E-commerce and food delivery platforms are increasingly adjusting platform fees and various charges as online shopping becomes more popular in India. Companies such as Zomato and Swiggy are exploring new strategies, pursuing greater profits while transferring additional expenses to consumers.

However, these extra charges have not been well received by all. Many users have taken to social media to express their dissatisfaction. A Reddit user highlighted the steep demand surge fee from Blinkit: “While placing an order, the user noticed this fee in the billing section. Delivery is free, but Blinkit imposes a high demand surge charge on a ₹250 product. How low can they go?”

While a segment of users voiced their discontent over these additional fees, others accepted them as part of the convenience factor. “The convenience comes at a price. It’s up to you to decide,” commented one user. Another user elaborated on the reasoning behind the surge fee, stating, “If there’s already an order in your area, the surge fee will apply. I tested this with two devices… Once the first order was delivered, the surge fee was removed.”

One user advocated for clearer pricing while suggesting that businesses refrain from providing substantial incentives that deplete investor resources. “Clear charges can assist us in better planning our purchases,” they noted.

For platforms like Zomato and Swiggy, these fees are essential for enhancing their take rates—this refers to the income they earn per order. In India’s food delivery market, which is nearly a duopoly, both companies have been trialling increased platform fees to bolster their revenue streams.

Zomato’s Blinkit and Swiggy’s Instamart also implement similar handling fees for rapid commerce deliveries. These charges, although often debated, are part of a broader strategy aimed at achieving profitability in an intensely competitive landscape.