GST levy and hike in platform fees is set to make food delivery more expensive in the coming days.
Zomato, Swiggy and magicpin have recently raised their platform fees, just ahead of the festive season.
Add to that: the cost of ordering food online is likely to rise further after the 18% GST on delivery charges, effective from September 22.
Swiggy increased its platform fee to Rs 15, including GST, in some markets, while Zomato has raised its fee to Rs 12.50, excluding GST. Magicpin has also increased its fee to Rs 10 per order.
Experts estimate that the GST change will add about Rs 2 per order for Zomato users and Rs 2.6 for Swiggy customers, as reported by PTI.
A magicpin spokesperson said the company already pays 18% GST and that the change will not affect consumers.
"Recent GST changes do not impact our cost structure. Thus, for consumers, there would 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," they said, as quoted by PTI.
Platform fees have become an extra source of revenue for food delivery companies.
The recent increases by all three firms show that food delivery in the country is becoming more costly, raising questions about whether it can remain both convenient and affordable.
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