Giving a tough competition to its fellow competitors Zomato and Swiggy and earning more customers during the festive season, India's popular hyperlocal startup Magicpin announced that it has reduced its platform fees from Rs 7 to Rs 5 per delivery.

This is half of the fee imposed by other popular food delivery platforms like Zomato and Swiggy. The move comes just two weeks after Zomato and Swiggy increased their platform fee by 42 to 67 per cent. Zomato and Swiggy now charge Rs 10 per delivery compared to earlier Rs 7 and Rs 6 respectively, reports said.

Magicpin said on Monday that it has benefitted from its strategic move. The e-commerce platform's co-founder and CEO Anshoo Sharma came to the popular social media platforms X and LinkedIn to convey the happy news to his customers.

"This Diwali, we went against the current trend, and took some hard platform pricing decisions. Result: More than Half a Million festive food orders, Love and Support received during the long festive weekend! This is 2X of what we did last year," Sharma, wrote.

He later added that the company has decided not to increase the fee for the rest of the year. "Thank you magicpin patrons, we have decided to make those decisions as magicpin Promise for the rest of the year."

The 29 percent reduction in platform fee has helped in increasing the orders by a two-fold, according to News 18.

Founded in 2015 by Anshoo Sharma and Brij Bhushan, the Gurgaon-based company helps to connect retailers with their customers and helps customers find stores, restaurants, spas and other important locations in their locality. The online location intelligence platform also helps its customers receive rewards and magic points for shopping with local stores.

In Dec 2023, Magicpin was ranked as one of the 50 fastest growing companies in India.