As per reports, food delivery companies Zomato and Swiggy have raised the platform fee they charge customers to Rs. 6 per order in key markets such as Bengaluru and Delhi.

This represents a 20 percent increase from the Rs. 5 that both platforms previously charged in these markets. In Bengaluru, Swiggy is also now giving notice of a platform fee of Rs 7.

The two companies introduced platform fees last year, initially at Rs 2 per order.

Platform commissions are essential for delivery companies to improve their take rates, which drive sales per order; both Zomato and Swiggy are experimenting with platform commissions to increase overall revenue and profit in a two-company monopoly situation.

In January, Swiggy offered some users a platform fee of Rs. 10, significantly higher than the Rs. 3 it charged many users at the time. The 10 rupees was not charged to the user, but rather the higher fee was displayed at checkout and the user was charged 5 rupees after the discount.

In April, Zomato raised its platform fee from Rs. 4 to Rs. 5 per order in key markets such as the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow.

Higher platform commissions are one way these companies try to increase profitability, and advertising revenue is another route. This is especially important given the difficulty for platforms involved in food delivery to raise fees without antagonizing restaurants.

Zomato and Swiggy's quick commerce divisions, Blinkit and Instamart, also charge an equivalent fee called a handling charge. In Bengaluru, Blinkit charges Rs. 4 per order and Swiggy Instamart charges Rs. 5.