Food delivery to get costlier as Zomato, Swiggy set to revise platform fee after GST 2.0

Food delivery platforms such as Zomato, Swiggy and Magicpin are set to hike platform fees, owing to the recent GST reforms. GST 2.0 has imposed 18 per cent GST on delivery charges. The GST changes are effective from September 22. Consequently, ordering food online will become costlier for millions of users across the country ahead of the festive season.

Swiggy, reportedly hiked its platform fee to Rs 15, inclusive of GST, in selected markets. Rival food delivery platform, Zomato, raised its platform fee to Rs 12.50 (excluding GST). Meanwhile, the third-largest food delivery player, Magicpin, also revised its platform fee to Rs 10 per order, in line with broader industry trends, making food delivery expensive for food delivery consumers.

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Estimates suggested that an additional 18 per cent GST would be levied on delivery charges from September 22. It would add roughly Rs 2 per order for Zomato users and Rs 2.6 for Swiggy customers. PTI has sent queries to Swiggy and Zomato, but has yet to receive a response.

Won't impact customers: Magicpin

Magicpin's spokesperson told PTI that it has already been paying 18 per cent GST on its food-delivery costs. "Recent GST changes do not impact our cost structure. Thus, for consumers, there will be no impact of the GST increase. Our platform fees will remain at Rs 10 per order, which is also the lowest among major food delivery companies," the spokesperson added.

Platform fees emerged in the past as an additional source of revenue for food delivery players.

The simultaneous hikes by Zomato, Swiggy and Magicpin underline a growing trend of rising costs in India's food delivery sector, raising questions about whether affordability and convenience can still go hand in hand for millions of customers.