.png){kind=small}
.png)
.png)
.png)
.png)
3 days ago
6
ARTICLE AD BOX
A Coimbatore resident's social media post has ignited a debate about online food delivery costs. The customer highlighted an 81% price difference between ordering through Swiggy and buying directly from the restaurant. This sparked discussion about platform fees, restaurant commissions, and whether the convenience justifies the extra expense, with some suggesting restaurants inflate prices to offset commissions.
Ordering food online is a comfort that we all love to enjoy. But, when it comes for a hefty price, it surely raises concerns about whether the cost of convenience is worth it or not.In a recent incident, a Coimbatore resident sparked discussion on social media after claiming that a meal ordered through Swiggy cost nearly 81 percent more than purchasing the same dishes directly from a restaurant just two kilometers away.
In the social media post, the customer Sunder (@SunderjiJB),shared the detailed comparison of both bills on X, writing, “Hey @Swiggy, please explain. Why does ordering food in the app 81% more expensive than buying the same food from the same outlet, just 2kms away? Is this the real cost of convenience? The extra that I have to pay to get the food delivered is INR 663.”If we look at this screenshot, his Swiggy order totalled ₹1,473, while the same dishes cost him only ₹810 when purchased directly.
The post quickly gained traction, crossing more than 3 million views.As per reports, Swiggy had earlier mentioned that they are trying to maintain transparency in their services and the prices might be different online and offline as it is the sole discretion of the restaurant.What is a platform fee?A platform fee is a charge added on top of item prices, delivery charges, restaurant charges, packaging costs, surges and GST.
It is highlighted separately in the bill.Reacting to the post, Nifty Bulls (NISM Research Analyst Certified) explained and wrote, the price of each dish that you see on the platform is inputted by the restaurant manager / owner. This is not inputted by Swiggy / Zomato.Usually, Swiggy & Zomato charge a max commission of upto 30% for each sale. Hence, to compensate for this, the restaurant manager / owner list their INR 100 dish for about INR 140 (40% higher) so that they eventually get their INR 100 back.
(Deducting 30% commission on INR 140 = ~INR 100).The user further explained why Swiggy & Zomato charge 30% commission?*Customer acquisition → They bring additional restaurant to customer who would otherwise not go there to eat*Logistics → Handle delivery fleet, routing, tracking, customer support*Tech platform → App development, payment gateway, fraud prevention*Marketing & promotions → Discounts, ads, visibility boosts inside the appTo support all this, Commission is their primary source of revenueIn your case, this restaurant seems to have gone greedy and is charging way higher amounts per dish than what it would lose to Swiggy.What do you think of this? Let us know your reaction in the comments section.Thumb Image Courtesy: X
English (US) ·