Prior to the festive season, online food aggregators like Jomato, Swiggy and Magicpin have given a big blow to the common people. These platforms have announced to make the platform fees expensive. After which ordering online food will be expensive for millions of people across the country. From September 22, it can increase further due to the imposition of 18 percent GST on delivery charge. Let us also tell you how much platform fees have been increased by this company.
Which company has increased how much
Swiggy has reduced its platform charge in select markets with GST to Rs 15. Rival Jomato has raised its fee to Rs 12.50 (except GST), while the third largest food delivery company Magicpin has also revised its platform fee and ordered Rs 10 per order to Rs 10 per order. It is believed that due to 18 % GST to be levied at delivery fee from 22 September, there will be an additional burden of about two rupees per order for Jomato users and Rs 2.6 for Swigy customers. So far no official statement has come from Swiggy and Jomato about this.
New source of earnings
A Magicpin spokesperson said that the company is already paying 18 percent GST on its food distribution cost. The spokesperson further said that recent changes in GST do not affect our cost structure. Therefore, GST growth will not have any effect on users. Our platform fee will be only Rs 10 per order, which is the lowest among the major food distribution companies. In recent times, the platform fee has emerged as an additional source of revenue for food distribution companies. The increase by Jomato, Swiggy and Magicpin underlines the rising trends of rising costs in India’s food distribution sector, which raises the question whether the strength and facility for millions of customers can still run together.