In a bold move to enhance customer engagement during the festive season, hyperlocal e-commerce platform Magicpin has reduced its platform delivery fees to Rs 5, significantly lower than its competitors Zomato and Swiggy.
This new fee structure is a strategic response to recent price hikes by both rivals, who increased their platform charges by 42-67% just weeks prior.
Magicpin’s Founder and CEO Anshoo Sharma announced the price cut on social media platform X, emphasizing the company’s commitment to both its delivery partners and customers.
“We can find a balance towards the welfare of our delivery heroes and our customers during festive seasons. Hence, here is a Magicpin promise to let more people enjoy the festive season,” Anshoo Sharma stated.
He further assured customers that there would be no increase in food delivery fees for the remainder of 2024.
The timing of Magicpin’s decision comes as Zomato raised its platform fee from Rs 7 to Rs 10, while Swiggy adjusted its charges from Rs 6 to Rs 10.
These increases have drawn criticism from consumers, leading to Magicpin’s strategic pivot.
Prior to the fee reduction, Magicpin charged Rs 7 for its platform fee.
The company has reported a remarkable increase in orders, with a two-fold jump year-over-year during the recent Diwali celebrations.
Anshoo Sharma noted, “This Diwali, we went against the current trend and took some hard platform pricing decisions. Result: More than Half a Million orders, Love and Support received during the long festive weekend! This is 2X of what we did last year.”
Magicpin’s aggressive pricing strategy positions it as a competitive alternative in the hyperlocal delivery market, as it seeks to attract cost-conscious consumers and capitalize on the festive season’s demand surge.
