Magicpin, a hyperlocal delivery service, has cut its platform fee to INR 5 per delivery, making it half the cost of what Zomato and Swiggy charge. This change comes as major players in the food tech sector are increasing their platform fees.
Magicpin announces fee reduction for the year
Anshoo Sharma, Magicpin co-founder and CEO took to X and wrote, “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.”
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He added that this change aims to support delivery partners while keeping customers satisfied. Magicpin has cut its platform fees to INR 5 for the rest of the year, which is half of what competitors Zomato and Swiggy charge. This comes after both competitors raised their fees to INR 10 per order last month due to the festive season.
Meanwhile, the delivery platform’s price cut is part of its strategy to strengthen its role in the food delivery market. The company recently launched Velocity, a logistics service that works with partners like Shadowfax, Dunzo, Rapido, Porter, Ola, and Zypp. Through Velocity, Magicpin serves big brands like KFC, Burger King, and Rebel Foods.
Magicpin handles 90% of orders on ONDC
Furthermore, Magicpin announced it will keep the INR 5 platform fee for the rest of 2024, down from INR 7. This decision follows magicpin’s growth on open network for digital commerce (ONDC), where it handles 90% of food orders from major apps like Paytm, Tata Neu, and Ola. The company recently said it processes 150,000 daily orders for food and logistics, a 1500 times increase in the last 16 months.
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Established by Sharma and Brij Bhushan in 2015, Magicpin started as a retail discovery and rewards platform before moving into food delivery. Bhushan recently joined Prime Venture Partners as a venture partner, while Sharma continues to lead the company’s growth plans. Magicpin plans to invest INR 100 crore to enhance its presence on ONDC and aims to bring 100,000 new restaurants and cloud kitchens on board.
Notably, Magicpin now works with 70,000 restaurants, up from 22,000 since joining ONDC in March 2023. It has gained over 10% of the food delivery market in important areas like Delhi NCR and Bengaluru.
