Merely days after Zomato hiked its platform fees, its closest competitor, Swiggy, has also followed suit, introducing a new platform fee of Rs 17.58 compared to the previous fee of Rs 14.99. This amounts to a 17% increase in platform fees.
Swiggy's new platform fees can be seen as the app, with the food delivery giant notifying users that the fee hikes would help the company "operate and maintain the Swiggy platform".
This comes on the back of Zomato hiking platform fee by 19%, as per calculations by NDTV Profit on Friday. The increase translated into an additional Rs 2 for food deliveries.
It must be noted that Swiggy and Zomato platform fees now stand similarly at around Rs 17.58, including GST.
Swiggy's last platform fee hike came back in September, when it was raised 20% to Rs 14.99. Sources at Swiggy have informed NDTV Profit that the fee hikes will help boost operating leverage and provide parity with Zomato.
ALSO READ: Zomato Hikes Platform Fee By 19%; Shares Jump Over 3%
The management remains focused on meeting guidance despite headiwnds as inflation risk, state elections put pressure on margins.
Shares of Swiggy are trading half a percent higher in trade on Tuesday. However, the stock has fallen almost 30% on a year-to-date basis.
Out of 28 analysts tracking the company, 23 maintain a 'buy' rating, three recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 59%.
Zomato, on the other hand, has a similar upside potential of 59%, with 30 out of 33 analysts tracking the company having a 'buy' rating on the counter.
ALSO READ: Swiggy, Magicpin, Zomato See Food Delivery Regain Growth Momentum In December Quarter
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