Hyperlocal e-commerce platform Magicpin has reduced its platform charges to Rs 5 per delivery, a significant cut that brings its fees to half those of major competitors. The announcement by Magicpin Founder and CEO Anshoo Sharma, made on social media platform X (formerly Twitter), comes just weeks after popular food delivery giants Zomato and Swiggy hiked their platform fees by 42-67% per order.
Sharma emphasized Magicpin’s commitment to balancing affordability for customers and fair compensation for delivery partners during the festive season, saying, “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% of competition to Rs 5 only for the rest of the year.”
This strategic move promises stability for Magicpin customers, as Sharma confirmed no additional platform fee hikes will take place in 2024. The decision contrasts sharply with the recent hikes by Zomato and Swiggy, which raised fees to Rs 10 per delivery—above their previous Rs 7 and Rs 6 charges, respectively.
Magicpin’s proactive reduction, from its own previous Rs 7 per delivery to Rs 5, comes just ahead of Diwali and has already shown a substantial impact, boosting order volumes. According to Sharma, the change has resulted in more than half a million orders and doubled the platform’s year-over-year order volume during the festive period.
“This Diwali, we went against the current trend and took some hard platform pricing decisions,” Sharma shared. “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.”
