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 the same hotel ‘A’ through Swiggy, it is shown as 50/—rupee at the MRP price.

Why these discrepancies? I even 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. Because of that, they get 70% of the total cost, and 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. Even the same hotel owner told me that Swiggy again charged the customer an approximate INR 50 delivery fee and more taxes.

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

That’s why you are charged more for 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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