Karnataka Mulling To Impose Fee On Swiggy, Zomato, Rapido, Uber, Others: Report

Karnataka is set to introduce a new transaction fee on digital platform services that could impact millions of daily users across the state. The state government plans to implement a 1-2 per cent welfare fee on all transactions made through popular platforms including food aggregators Zomato and Swiggy, and Flipkart, Amazon, Ola, and Uber, says a report by MoneyControl.

Funds To Support Welfare Of Gig Workers

The collected funds will directly support a dedicated welfare board focused on providing social security benefits to the state's growing gig workforce. The initiative spans across multiple sectors, including food delivery, ride-sharing, e-commerce, and professional services.

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"We're establishing a welfare board that will receive these transaction-based fees, ranging from 1-2 per cent per order on each platform," confirmed a senior state government official, according to the MoneyControl report.

Fee Structure To Apple To Also Apply To Rapido, Dunzo, Others

The fee structure will apply to all major digital platforms operating in Karnataka, including Rapido, Dunzo, Zepto, Porter, and Namma Yatri.

While the initial draft bill proposed fees between 1-5 per cent, authorities are likely to settle on a more modest 1 per cent charge once the rules are finalised. The government is specifically considering applying the fee to transportation costs rather than total product value, acknowledging existing GST obligations on overall costs.

The Karnataka cabinet is scheduled to review the Platform-based Gig Workers (Social Security and Welfare) Bill on October 24, with plans to present it during the winter assembly session in Belagavi this December.

This development follows earlier discussions where officials debated between transaction-based fees versus turnover-based collections. The government ultimately chose the per-transaction model after considering input from platform operators.

The move mirrors recent welfare initiatives in Karnataka, such as the recently approved Karnataka Cine and Cultural Activists (Welfare) Bill, which implemented a similar 2 per cent cess on movie tickets and OTT subscriptions.

For consumers, this new fee structure means slightly higher costs for platform-based services, potentially affecting ordering patterns. However, the initiative aims to create a sustainable social security framework for the state's expanding gig economy workforce.

The legislation comes after the government's initial attempt in June 2024 to introduce the draft Platform-Based Gig Workers Bill, which was temporarily suspended for further consultation.