Updated January 24th, 2024 at 13:54 IST
Swiggy terms platform fee hike as ‘experiment,’ refutes ‘significant increase’
The IPO-bound quick-commerce company introduced a Rs 2 platform fee in April, which has gone up
No hike, for now: Bengaluru-based food delivery unicorn Swiggy has refuted claims of changing its platform fee, after reports that the IPO-bound company was mulling a Rs 10 hike.
The platform had introduced a Rs 2 platform fee in April last year.
A spokesperson for the company responded to Republic Business’ query, saying, "Swiggy has not changed its platform fee, and has no plans for a significant increase in the near term.”
Terming it as an experiment, the quickcommerce company said it keeps running small experiments to better understand consumer choices.
“This was one such experiment, and we may or may not scale it up in the future if it doesn't meet our goal of serving our users in the best way possible. We're always looking for ways to make our platform more affordable,” the spokesperson added.
Swiggy competes with publicly-listed company Zomato, who saw shares spike as much as 2.11 per cent to Rs 132.80 after the reports.
Notably, the platform fee on both food delivery platforms Zomato and Swiggy shows as Rs 3.
There are reports of the platform fee varying across regions and usage patterns.
Swiggy said while it charges more than the Rs 2 platform fee in line with competition, it is less than Rs 10.
Last month, Swiggy introduced Pockethero, an in-app online ordering service at no cost which offers upto 60 per cent discounts by listing select restaurants that are in a 3-km range of customers.
The spokesperson said Pockethero is designed for budget-conscious consumers, which is being expanded across the country right now.
The service is live for consumers in Delhi and the National Capital Region, as well as adjoining regions in North India including Jaipur, Lucknow and Chandigarh. The platform is set to be launched in Bengaluru, Mumbai, Pune, Chennai, Hyderabad, and Kolkata.
The move is also likely because the food-delivery market is experiencing slower growth.
Founded in 2014, Swiggy has a valuation of $7.85 billion as on October 17, 2023 according to markets data platform Tracxn.
For its IPO process, the company is likely to have picked seven investment banks, including Kotak Mahindra Capital, Citi and JPMorgan, Bofa Securities, and Jefferies, among others.
Published January 24th, 2024 at 13:54 IST