CEO Claims He Reduced Online Food Orders Due To Swiggy And Zomato's Fee Hike
CEO Claims He Reduced Online Food Orders Due To Swiggy And Zomato's Fee Hike
A Bengaluru entrepreneur revealed that he has cut down on his ordering habits from 12 times a week to just once, after Swiggy and Zomato started charging higher platform fees.

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.”

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.”

Another shared, “Online food ordering is going to be the bane of the young and tailwinds for pharma and healthcare.”

“The biggest component is packaging charges in online orders,” a comment read.

Another wrote, “It started with Rs 2 a few months ago. Sure, they are growing like crazy today.”

An individual shared, “I’ve never been a fan of food companies’ business model or the idea of fast, unhealthy food.”

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.”

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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