Capitalmind founder-CEO Deepak Shenoy clarified that it wasn't just the convenience of ordering food online.
Deepak Shenoy, the CEO of Bengaluru-based company Capitalmind, has admitted that he has reduced ordering food from Swiggy and Zomato because of how much the platforms have been charging.
"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.
Massively reduced ordering from Swiggy/Zomato, down to just once maybe on a weekend, like today and noticed their "platform" charge is now Rs.
— Deepak Shenoy (@deepakshenoy) July 13, 2024Shenoy also said that it wasn't just the convenience of ordering food online.
Capitalmind founder-CEO Deepak Shenoy clarified that it wasn't just the convenience of ordering food online. The platform fee charged by the companies 'has gone up considerably'.
Food delivery companies Swiggy and Zomato had last year introduced platform fees (as low as Rs 2), but their decision to increase the fees has already begun to tick customers off. Deepak Shenoy, the CEO of Bengaluru-based company Capitalmind, has admitted that he has reduced ordering food from Swiggy and Zomato because of how much the platforms have been charging.
"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," he wrote on X. "They also take 30 percent from restaurants, btw."
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The founder-CEO revealed that he used to order lunch and dinner for his family around 12 times a week. That has gone down to either once a week or once in two weeks. "Moved to a much healthier home-cooked alternative," Shenoy said.
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. — Deepak Shenoy (@deepakshenoy) July 13, 2024
Shenoy also said that it wasn't just the convenience of ordering food online. The platform fee charged by the companies "has gone up considerably". "Many restaurants offer lower prices if you order direct, and for larger orders the difference is substantial," he said.
Responding to his post, an X user Bikram Singh (@stonedsufi) commented: "Just realised that the prices are padded up as well.... realised that every dish was marked in their app at prices that were much higher. The dish was priced at Rs 295 on the restaurant menu and Rs 365 on Zomato...Have deleted Zomato and Swiggy both as padding was evident in both. Have taken a decision with the entire family - eating out will now mean going out and eating at a restaurant. No more calling food in. That's that."
While it's important to note that restaurants are responsible for fixing their prices on both Swiggy and Zomato, it's also true that platform charges of both food delivery services have been on the rise. Both the companies had launched platform fees at Rs 2 with every order irrespective of the cart value in 2023.
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Now, the platform fee for Swiggy stands at Rs 5 per order, and the company has hinted at a potential fee hike, targeting a "small set" of users. It is likely to charge them Rs 10 per order. The move is aimed at trimming losses ahead of its plans for a public listing later this year.
