Online food delivery giants Zomato and Swiggy are bracing for a significant financial blow. New GST regulations are expected to cost the companies a substantial amount, estimated between 180 and 200 crore rupees. This substantial tax increase is forcing the companies to consider passing the added costs onto their customers and delivery partners.

The impact of this tax burden will likely be felt across the board. Consumers can anticipate higher food delivery fees, potentially impacting the affordability and convenience that have driven the popularity of these services. Meanwhile, delivery partners, already operating on tight margins, may see a reduction in their earnings per delivery. This could lead to reduced income for many individuals who rely on these platforms for their livelihood.

The situation highlights the complex interplay between government regulations and the rapidly evolving gig economy. The considerable financial strain on Zomato and Swiggy underscores the need for careful consideration of the impact of such regulations on both businesses and the individuals who work within the ecosystem. How the companies choose to distribute the added costs will be a key factor in determining the long-term consequences for all stakeholders. The coming months will reveal whether these adjustments maintain the platforms’ accessibility and profitability.