Abhishek Gaur
4 Nov 2024
Magicpin has reduced its platform fee to INR 5 per delivery, while competitors increased theirs.
The company processed 500K food orders during the festive season, doubling its year-on-year growth.
Magicpin processes 150K daily orders on ONDC, up from 22K in March 2023.
The company plans to onboard 100K restaurants and invest INR 100 crore in ONDC.
Magicpin, a prominent hyperlocal delivery platform, has made a bold move to disrupt the food delivery market by slashing its platform fee to a mere INR 5 per delivery. This significant reduction positions the company at half the fee charged by industry giants like Zomato and Swiggy.
The strategic decision comes at a time when major players have increased their platform fees, potentially impacting delivery partners and, ultimately, consumers. By offering lower fees, Magicpin aims to attract more delivery partners and incentivize them to prioritize its platform.
Magicpin's aggressive pricing strategy is part of a broader effort to strengthen its position in the competitive food delivery market. The company has been actively expanding its operations and leveraging the Open Network for Digital Commerce (ONDC) to reach a wider audience. By partnering with ONDC, Magicpin can connect with a larger pool of consumers and businesses, further solidifying its market presence.
The company's focus on technology and innovation has also been instrumental in its growth. Magicpin has invested heavily in building a robust technology platform that enables efficient order fulfillment and seamless customer experiences.
As the Indian food delivery market continues to evolve, it is likely to witness further consolidation and competition. Magicpin's strategic moves, including its aggressive pricing strategy and focus on technology, position it well to capitalise on the growing demand for convenient and affordable food delivery services. Source: Inc42
