Hyperlocal e-commerce app Magicpin has reduced its platform costs to Rs 5 per delivery, a fraction of what its rivals charge, a top company official said on Sunday.
In the past two weeks, Zomato and Swiggy have increased the speaker’s fees in the range of 42-67 percent per delivery. Magicpin founder and CEO Anshoo Sharma, on social media platform X, announced a reduction in platform fees applicable to deliveries within the current calendar year.
“We can find a balance in the well-being of our delivery heroes and our customers during the holiday season. So, here’s a magical promise to let more people enjoy the holiday season.
The cost of the Magicpin platform has been reduced by 50 percent of the competition to only Rs 5 for the entire year,” said Sharma. He said there will be no increase in food delivery fees till the end of 2024.
Zomato has increased the platform fee from Rs 7 to Rs 10, which will be charged to customers apart from the delivery fee per order. Swiggy followed suit and increased the platform fee to Rs 10 from the Rs 6 it had charged earlier.
Before Diwali, Magicpin was charging a platform fee of Rs 7, which has reduced by almost 29 percent, following which it recorded a double jump year-on-year.
“This Diwali, we’ve gone against the grain and made some tough pricing decisions. The result: More than half a million orders received, Love and Support over the long holiday weekend!
This is 2X of what we did last year,” Sharma said in a post to X.