magicpin Cuts Platform Fee By 29% To Drive Growth In Daily Orders

Hyperlocal delivery platform Magicpin has reduced its platform fee to INR 5 per delivery, positioning itself at half the fee charged by competitors Zomato and Swiggy. The announcement comes as the foodtech sector sees platform fee increases from major players.

In a post on X, magicpin cofounder and CEO Anshoo Sharma said, “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.”

He went on to say that this move comes to balance the welfare of their delivery partners and also to keep the customers happy, magicpin’s platform fees slashed by 50% of competition to INR 5 only for the rest of the year. 

The move follows recent platform fee hikes by competitors, with both Zomato and Swiggy increasing their charges to INR 10 per order from last month.

The strategic price reduction comes as magicpin strengthens its position in the food delivery space. The company recently launched Velocity, its logistics aggregation vertical, which partners with providers such as Shadowfax, Dunzo, Rapido, Porter, Ola and Zypp. Through Velocity, magicpin serves major brands including KFC, Burger King, and Rebel Foods.

The Gurugram-based company said it would maintain the INR 5 platform fee through the remainder of 2024, a significant reduction from its previous charge of INR 7.

The decision comes amid magicpin’s growth on ONDC, where it fulfils 90% of food orders from major buyer apps including Paytm, Tata Neu, and Ola. The company recently announced it processes 150K daily orders for food and logistics on the network, marking a 1500X surge in the past 16 months.

Founded in 2015 by Sharma and Brij Bhushan, magicpin began as a retail discovery and rewards platform before expanding into food delivery. While Bhushan recently joined Prime Venture Partners as a venture partner, Sharma continues to lead the company’s expansion plans. The company plans to invest INR 100 Cr to strengthen its presence on ONDC and aims to onboard 100K new restaurants and cloud kitchens.

The platform currently partners with 70K restaurants, up from 22K when it joined ONDC in March 2023. magicpin has achieved over 10% market share in key markets including Delhi NCR and Bengaluru for overall food delivery.