Magicpin Reduces the Platform Charge to INR 5 for Each Shipment

Nitin Konde, Varun Bhardwaj

Nov 5, 2024 — 2 min read

Magicpin Cuts Platform Charge to INR 5 per Shipmen

The hyperlocal e-commerce site Magicpin has lowered its platform fee to INR 5 per delivery in an effort to lower customer costs. This puts it at half the price that Zomato and Swiggy, two of its main rivals, charge. The decision was made at a time when many delivery service companies are raising their prices.

Move Can Boost Company’s Sales

Compared to its former INR 7 price, Magicpin's new INR 5 fee represents a considerable savings of about 29%. Notably, the cut contrasts sharply with recent fee hikes by big food delivery companies, such as Zomato, which increased its platform cost from INR 7 to INR 10. Swiggy followed Zomato's lead and increased their platform cost from INR 6 to INR 10.

Thus, by implementing this technique, the business is gaining an advantage in the race for quick commerce, and this step is undoubtedly aligned with attracting more users to Magicpin's platform.

Company’s Oder Book Increases by Two Fold

Anshoo Sharma, the CEO of Magicpin, made the announcement on X (previously Twitter). Additionally, he gave users his word that the reduced fee would last until the end of 2024. Sharma underlined that this action was a part of a commitment to strike a balance between the demands of delivery workers and customers, enabling more people to enjoy their shopping experiences during festive times.

After this, Magicpin reported that, in comparison to the prior year, the company's orders during the Diwali season doubled. Magicpin deviated from the norm this Diwali by making some firm platform pricing choices. As a result, during the long Diwali weekend, over half a million orders for festive food and love and support were received! This is twice what the business accomplished the previous year. "We appreciate Magicpin customers and have made the decision to stick to Magicpin Promise for the remainder of the year," the firm announced, quoting Anshoo Sharma.

Beyond just food delivery, platform fees are also rising in industries like fashion and general e-commerce, making online shopping more and more costly. Little handling fees are also charged by BigBasket and Licious, although their shipping costs are cheaper at INR 15 and INR 39, respectively. The total cost of internet shopping is increased by these extra fees, which occasionally go unnoticed by customers.

What Magicpin Does?

Anshoo Sharma and Brij Bhushan co-founded Magicpin in 2015, and it is a significant player in hyperlocal retail. The platform thrives in the age of technology and fosters mutual development by connecting businesses of all sizes with customers. Magicpin becomes a major player in the ever-changing world of online commerce by employing innovative solutions to improve the shopping experience. Users of this online location intelligence platform can find nearby eateries, retail establishments, spas, and fitness facilities. With its headquarters located in Gurgaon, Haryana, Magicpin allows brands and merchants to interact with their customers and offer them customised deals.