The hyperlocal e-commerce app Magicpin has brought its platform fee by Rs 5 per delivery, comparatively less by a half of what its peers charge.

Anshoo Sharma, the founder and CEO of Magicpin, said on social media site X that platform costs for deliveries made this year would be reduced.

"We can find a balance towards the welfare of our delivery heroes and our customers during festive seasons. Hence, here is a magicpin promise to let more people enjoy the festive season. magicpin's platform fees slashed by 50 percent of competition to Rs 5 only for the rest of the year," Sharma said.

According to him, there won't be any increases in food delivery fees for the remainder of 2024.

Zomato and Swiggy increased their platform fees by 42–67 percent every delivery about two weeks ago.

Zomato raised the platform fee from Rs 7 to Rs 10 that customers will have to pay.

The charge increase, according to the company, is a regular business practice that is carried out occasionally.

In August 2023, Zomato charged Rs 2 per order as its initial platform fee; by January 2024, that amount had increased to Rs 4. With the most recent increase, all customers—including Gold members—now pay a fee of Rs 10 per purchase, which is in addition to other order-related expenses including GST, delivery costs, and restaurant fees.

In line with this, Swiggy increased the platform fee from Rs 6 to Rs 10.

Platform fees were originally implemented by Swiggy, which paved the way for its competitor Zomato to follow suit.

Prior to Diwali, Magicpin charged a platform fee of Rs 7, which it has since cut by roughly 29 percent. As a result, it has seen a twofold increase in order volume year over year.

"This Diwali, we went against the current trend and took some hard platform pricing decisions. Result: More than Half a Million orders, Love and Support received during the long festive weekend! This is 2X of what we did last year," Sharma said in a post on X.