Why food you order online platform like Swiggy is more expensive than eating in the same hotel you ordered from?

I have been wondering about this for a long time,

When I eat Bhel Puri for 35/- rupee at Hotel ‘A’ but I order the same Bhel Puri from same hotel ‘A’ through Swiggy is shown as 50/- rupee at MRP price.

Why these discrepancies? Even I saw Swiggy’s user base repeatedly asking them the same question on Twitter.

I just asked the same question to the hotel owner of ‘A’. What he said is something like this. When you order food from Swiggy, Swiggy charges a 30% commission on the total order cost to the Hotel owner. So because of that, they get 70% of the total cost, to recover these losses, they increase their prices on the Swiggy product listing platform. So they value their 30 rupee Bhel for 50 rupees on Swiggy. And even the same hotel owner told me that Swiggy also charges the customer an approximate INR 50 delivery fee and more taxes again.

So, Swiggy earns money from both parties by charging the hotelier and the customer.

And that’s why you are charged more on Swiggy.

Thanks & Regards
Mandar Apte

Published by Mandar Apte

Mandar is a Mumbai-based multi-disciplinary designer with UX/UI, Logo, Symbol, and Brand Identity design expertise. He currently runs his Mudrkashar Linguistic Apple iPhone, iPad, and Mac app business in the heart of Mumbai city.

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