Hyperlocal e-commerce platform Magicpin cuts platform fee to Rs 5 per delivery

In a strategic move aimed at easing customer costs, hyperlocal e-commerce platform Magicpin has reduced its platform fee to Rs 5 per delivery, positioning it at half the rate charged by major competitors like Zomato and Swiggy.

The decision comes at a time when many delivery service providers are hiking their fees.

Competitors' platform fees

The new Rs 5 fee by Magicpin marks a significant reduction from its previous Rs 7, translating to approximately a 29% decrease.

Notably, the reduction stands in sharp contrast to recent increases by major food delivery players, including Zomato, which raised its platform fee from Rs 7 to Rs 10. Swiggy mirrored Zomato’s change, also setting its platform fee at Rs 10, up from its prior Rs 6.

Magicpin's CEO shares announcement

The development was announced by Magicpin's CEO, Anshoo Sharma, on X (formerly Twitter). He also assured users that this lower rate would remain in place through the end of 2024. 

Sharma emphasized that this move was part of a commitment to balance the needs of customers and delivery personnel, allowing more people to enjoy their shopping experiences during peak seasons.

Following this, Magicpin said that the company saw a two-fold increase in orders during the Diwali season compared to the previous year.

"This Diwali, we went against the current trend, and took some hard platform pricing decisions. Result: More than Half a Million festive food orders, Love and Support received during the long festive weekend! This is 2X of what we did last year. Thank you magicpin patrons, we have decided to make those decisions as magicpin Promise for the rest of the year," the company shared, citing Anshoo Sharma.

This Diwali, we went against the current trend, and took some hard platform pricing decisions.

Result: More than Half a Million festive food orders, Love and Support received during the long festive weekend!

This is 2X of what we did last year.

Thank you magicpin patrons, we… pic.twitter.com/1UIP3FTx6A

— magicpin (@mymagicpin) November 3, 2024

The rise in platform fees extends beyond food delivery to sectors like fashion and general e-commerce, contributing to an increasingly expensive online shopping experience.

BigBasket and Licious also have modest handling fees but lower delivery fees at Rs 15 and Rs 39, respectively. These additional charges, which sometimes go unnoticed by consumers, cumulatively add to the overall expense of online shopping.