If you’ve been following the news lately, you know that tech companies have been struggling to make ends meet. Major tech companies have had massive layoffs in order to cut costs. It seems that food tech companies are not immune from this economic and financial crisis. Recently, the food tech giant and Swiggy’s major competitor, Zomato, was also in the headlines because it, too, had massive layoffs. Now, it seems that Swiggy is struggling as well.
Swiggy Levies ₹2 As Platform Fee On All Food Orders
Amidst economic and financial struggles, the Foodtech giant Swiggy has decided to roll out what it is calling a “platform fee.” The fee will be levied on food orders and will be applicable in three major cities so far. These cities are Bengaluru, Hyderabad, and Chennai.
A fee of ₹2 will be applicable on all food orders placed in these three cities regardless of the value of the order. According to an article published on Mint, a spokesperson from Swiggy said that the nominal platform fee will help them function in a smoother and more efficient manner.
It will help them in improving the platform as well as the user’s experience. The Swiggy officials are also planning to introduce this platform fee in other major cities as well. However, it is, as of yet, unknown as to when the fee will be introduced in other major cities.
Also Read: Twitter User Orders Veg Biryani From Swiggy, Finds Piece Of Meat In It!
Food Tech Giant Struggling
The Mint article also reported that as per Invesco, which is an investment management company based in the United States of America or the US, the price of Swiggy’s shares dropped significantly. From $6,212 per share, it was down to $4,759.
Furthermore, this plummet in share prices has also resulted in a decline in the total valuation of the business. From being valued at $10.7 billion, it is now being valued at $8.2 billion. Recently, the food tech company also made headlines for laying 380 employees from its total of 6,000 employees.
Also Read: Swiggy Customer Orders Idlis Worth ₹6 Lakhs In 1 Year. Here Are Top Idli-Eating Indian Cities
How often do you use Swiggy? Do you think that levying a platform fee is a wise move? Let us know in the comments below!
Cover Image Credits: Canva Images (For Representation Only)