Chennai Woman Highlights Steep Price Hike on Swiggy: Rs 45 Bun Butter Jam Costs Rs 115

Priyanka Thirumurthy, a journalist in Chennai, recently brought attention to the significant price disparity between items listed on restaurant menus and those on food delivery apps like Swiggy. 

She shared her experience on social media, noting how a simple “bun butter jam” that costs Rs 45 at a local cafe was priced at Rs 115 on Swiggy, excluding taxes and delivery charges.

Calling the prices “ridiculous,” Priyanka explained that she had ordered the item for her guests but felt that such a steep markup made it more practical to either visit the cafe in person or prepare the snack at home. This incident underscores the “cost of convenience” associated with using food delivery services.

Food delivery platforms like Swiggy and Zomato typically charge restaurants a commission of 24-28% of the order value, excluding delivery charges. Restaurants often increase their prices on these apps to cover these commissions and avoid financial losses. Swiggy has clarified that they do not set the prices for food items; instead, the restaurant partners are responsible for determining the online prices. The platform aims to maintain transparency in its services, including pricing.

In response to similar complaints, Swiggy stated that while they strive for transparency, pricing decisions are made solely by the restaurants without additional input from Swiggy. Zomato, in its red herring prospectus, also noted that commissions are based on agreed-upon rates with restaurant partners, who may also pay for delivery-related advertisements on the platform.

Priyanka’s post has once again sparked discussions about the fairness and transparency of pricing on food delivery apps, highlighting the need for consumers to be aware of potential price differences when ordering online.