Hyperlocal e-commerce app magicpin has slashed platform charges to Rs 5 per delivery, half of the fee set by its competitors, a top company official said on Sunday.

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Around two weeks back, Zomato and Swiggy raised platform fees in the range of 42-67 per cent per delivery. Magicpin founder and CEO Anshoo Sharma, on social media platform X, announced the reduction in platform fees applicable for deliveries during the present calendar year.

"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.

Magicpin's platform fees slashed by 50 per cent of competition to Rs 5 only for the rest of the year," Sharma said. He said there will be no fee hike on food delivery for the rest of the year 2024.

Zomato increased the platform fee from Rs 7 to Rs 10, which will be charged to customers besides the delivery fee per order. Swiggy followed suit and raised the platform fee to Rs 10 from Rs 6 it charged earlier.

Before Diwali, Magicpin was levying a platform fee of Rs 7, which it has slashed by about 29 per cent, following which it has recorded a two-fold jump in order on a year-over-year basis.

"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," Sharma said in a post on X.