Ordering food online is once again getting attention due to its rising costs. A social media post on Sunday went viral after a customer claimed that food ordered through Swiggy was 81% more expensive than buying directly from the same restaurant just 2 kms away.
Customers complaint on 81% increase in Swiggy bills
In his post on X (formerly Twitter), the customer compared prices of four items. For 10 pieces of porotta, the restaurant charged Rs 180, while Swiggy billed Rs 350. Chicken 65 costs Rs 150 at the outlet but Rs 240 on the app. A plate of chicken lollipop was priced at Rs 200 at the restaurant compared to Rs 320 on Swiggy, and chicken thokku biriyani was billed at Rs 280 in person and Rs 460 online.
User reactions show a divide. The post received a variety of responses. Many users noted that such price differences are common. “Every time it happened, but people don’t care. That’s why they are charging too much,” one user wrote. Another remarked, “Swiggy and Zomato both do this. Their prices are different from the shop. Still, they are at a loss. With such higher rates and still not reflecting in the bottom line, it’s assumed they have higher costs of operation.”
GST 2.0 Impact Food Delivery Platforms
Rising costs in food delivery have cause online debate. This discussion comes as food delivery platforms have raised their platform fees ahead of the festive season. Swiggy has increased its fee to Rs 15 (including GST) in select markets, while Zomato has raised its fee to Rs 12.50 per order (excluding GST). Magicpin, the third-largest player, has positioned itself as the cheapest, keeping fees at Rs 10 per order.
Starting September 22, an 18% Goods and Services Tax (GST) will also be added to delivery charges, further increasing consumer costs. Industry estimates suggest the new tax will add about Rs 2 per order for Zomato users and Rs 2.6 for Swiggy customers.
Read also: Zomato Shares Rise 15% After Strong Q1 Results, Marks 52 time high