Raising food delivery fees by ₹2, Swiggy prepares for the bustling festival season
Swiggy Increases Platform Fee Ahead of Festive Season
Swiggy, a leading food delivery platform in India, has raised its platform fee to ₹14, marking a significant increase from the initial ₹2 introduced in April 2023. This move is part of Swiggy's strategy to boost its bottom line and achieve profitability, according to company sources.
The increase in platform fees follows successful experiments with premium pricing around last year's New Year celebrations. Swiggy and its competitor Eternal (previously Zomato) have previously tested and committed to the platform fee model, with order volumes remaining stable.
The latest hike comes ahead of the festive season, indicating that Swiggy is capitalizing on these seasonal surges. Despite the increases, Swiggy has seen no significant impact on order volumes, suggesting that customers have largely accepted these additional costs.
The hikes have contributed to Swiggy's revenue growth. With over 2 million orders daily, the latest fee of Rs 14 generates substantial additional income for the company. However, despite revenue growth, Swiggy reported a net loss of Rs 1,197 crore in Q1 FY26, nearly double the previous year's loss. This indicates ongoing challenges in achieving profitability, particularly in sectors like Quick Commerce (Instamart).
Swiggy remains focused on long-term sustainable profitability, indicating that these fee hikes are part of broader strategies to improve financial health. The company's revenue from operations rose 54% YoY to ₹4,961 crore in Q1 of FY26.
Photo Credit: SRINATH M/The Hindu.
It's worth noting that Eternal has also tested higher platform fees, with order volumes remaining stable. However, specific details about Eternal's platform fee changes beyond them being similar to Swiggy's were not available at the time of publication.
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- Swiggy's decision to boost its bottom line and achieve profitability through a platform fee hike ahead of the festive season follows successful experiments with premium pricing in the past.
- The increased platform fee contributes to Swiggy's revenue growth, with the latest fee of Rs 14 generating substantial additional income from over 2 million orders daily.
- Despite revenue growth, Swiggy reported a net loss of Rs 1,197 crore in Q1 FY26, highlighting ongoing challenges in achieving profitability, particularly in sectors like Quick Commerce (Instamart).
- Eternal, a competitor of Swiggy, has also tested higher platform fees, with order volumes remaining stable, suggesting that customers have largely accepted these additional costs.
- Swiggy's revenue from operations rose 54% YoY to ₹4,961 crore in Q1 of FY26, indicating a focus on long-term sustainable profitability, where these fee hikes are part of broader strategies to improve the company's financial health.
