Food delivery giants Swiggy and Zomato are facing backlash from users following their recent decision to raise platform fees. Initially, the Deepinder Goyal-led organisation had introduced a fee of Rs 2 per order, but it has now jumped to Rs 6. Following their footsteps, Swiggy also increased their fees in an attempt to boost profits in a tough and competitive market. While such apps offer quick food delivery, the recent fee hike has left many frustrated and Capitalmind CEO Deepak Shenoy is among them. The Bengaluru-based entrepreneur revealed that he has cut ordering habits from 12 times a week to just once. Shenoy claims the higher platform fee is the key reason for reducing his usage, alongside his focus on healthier habits.
The CEO wrote, “Massively reduced ordering from Swiggy/Zomato, down to just once maybe on a weekend, like today and noticed their ‘platform’ charge is now Rs 6. Happy that I weaned myself off the daily ordering. They also take 30% from restaurants, btw.” In a separate tweet, Shenoy added, “Happy to learn, from media sources, that I have reduced this ordering because of a move of platform fee from Rs 5 to Rs 6. Yes, that’s what caused it. I moved for health reasons, to a much more costly alternative, but it’s way way healthier.”
Happy to learn, from media sources, that I have reduced this ordering because of a move of platform fee from Rs. 5 to Rs. 6. Yes, that's what caused it ???? I moved for health reasons, to a much more costly alternative, but it's way way healthier.
— Deepak Shenoy (@deepakshenoy) July 15, 2024
Reacting to the post, a user wrote, “Did a comparison last week. Ordering through Zomato 350Rs, just walking up to the Restaurant and Buying is 275 Rs.”
Did a comparison last week.. ordering thro Zomato 350Rs, just walking up to Restaurant and Buying is 275 Rs… Thats the price paid for convenience and not stepping out of the home..— HsHari (@hshari24) July 13, 2024
Another shared, “Online food ordering is going to be the bane of the young and tailwinds for pharma and healthcare.”
Same. Online food ordering is going to be the bane of the young and tailwinds for pharma and healthcare.— Amol Srivastava (@amol_sri1) July 13, 2024
“The biggest component is packaging charges in online orders,” a comment read.
The biggest component is packaging charges in online orders.— Kumaar Appan (@prosper_haven) July 14, 2024
Another wrote, “It started with Rs 2 a few months ago. Sure, they are growing like crazy today.”
Yup. It started with Rs. 2 a few months ago. Sure, they are growing like crazy today, but I see (and hope) a future where a customer friendly company like @amazon , easily break their success story.— Rudra Kaushik (@Rudra_92) July 13, 2024
An individual shared, “I’ve never been a fan of food companies’ business model or the idea of fast, unhealthy food.”
I've never been a fan of food companies business model or the idea of fast, unhealthy food. It's all low-quality stuff. You consume it now and end up in hospitals later in life.— Byomkesh Bakshi (@soleduniaath) July 13, 2024
One more added, “I have observed the quality of the food that gets delivered is very bad compared to the same dish eaten fresh at the same restaurant.”
I have observed the quality of the food that gets delivered is very bad compared to the same dish eaten fresh at the same restaurant. It is not just the taste, but it looks too stale and cold. Stopped ordering from these apps unless necessary— chaitanya bendre (@cbendre) July 13, 2024
Despite the recent backlash, Zomato founder and CEO Deepinder Goyal has become a billionaire at the age of 41 after his company’s stock saw a massive growth. According to Forbes, Goyal holds approximately Rs 36.95 crore shares of Zomato, which is about 4.24% ownership. With the jump in share price, his net worth received a push of over Rs 8,424 crore, which makes him a billionaire at the age of 41.
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