Flipkart introduces platform fee of Rs.3

Walmart-owned Flipkart has introduced a platform fee of INR 3 on its e-commerce platform, according to reports. Additionally, the company has also rolled out its quick commerce arm, Flipkart, with a platform fee of Rs 5 per minute.

This is similar to handling fees on platforms like Swiggy's quick commerce business Instamart, Zomato's quick commerce platform Blinkit and quick commerce major Septo.

However, the fee is not applicable on Flipkart grocery orders or its travel vertical Cleartrip. Notably, Flipkart's fashion arm Myntra already has a similar fee structure. Flipkart's introduction of platform fees coincides with the company's renewed push into the rapid commerce space with Flipkart Minutes. The service is currently live in select zip codes, offering delivery within 8-16 minutes.

This move is seen as necessary to increase overall revenue and profit. Flipkart's new fees are in line with some quick commerce companies, but different from other major e-commerce players. Blinkit and Swiggy’s Instamart charge a handling fee of INR 4-5 per order, while Zepto’s fee is INR 9.99.

However, Flipkart's competitor Amazon currently does not charge platform or handling fees. Similarly, Meesho, which reported a profit in Q3 2023, also operates without platform fees.

The introduction of the platform fee comes as Flipkart continues to sell internationally on behalf of its parent company, Walmart. In the second quarter, Flipkart posted double-digit topline growth with improving contribution margins. Last month, foodtech companies Swiggy and Zomato reportedly increased platform fees to Rs 6 per order in key markets including Delhi and Bengaluru.

Even if subscribing to Zomato Gold or Swiggy One, the platform fee is a mandatory charge that a customer has to pay in addition to GST and restaurant fees.

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Jeroj

Date

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August 19, 2024

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