Why Did Swiggy Increase Its Platform Fee to Rs 14?
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Synopsis
In a recent move, Swiggy has raised its platform fee to Rs 14 amid festive demand, marking a significant increase over the past two years. This article explores the implications of this fee hike for consumers and restaurant owners, the financial struggles Swiggy faces, and the broader context of the food delivery industry.
Key Takeaways
- Swiggy's platform fee has increased to Rs 14.
- Significant fee hikes over past two years.
- Increased revenue generated from daily orders.
- Restaurant owners face pressure to raise menu prices.
- Ongoing criticism regarding worker conditions.
New Delhi, Aug 15 (NationPress) The prominent food delivery service Swiggy has raised its platform fee again for food orders, increasing it by Rs 2. The company has attributed this rise to a boost in customer transactions during the festive period, elevating the fee from Rs 12 to Rs 14 to leverage festive demand.
Swiggy has been persistently adjusting its fees. The platform fee has surged from Rs 2 in April 2023 to Rs 6 in July 2024 and Rs 10 in October 2024. The current fee of Rs 14 marks an astonishing 600 percent increase in just over two years.
Processing more than 2 million orders daily, this fee increment generates significant additional revenue, amounting to crores of rupees every day.
The company has yet to provide feedback on the latest platform fee increase.
In the June quarter (Q1 FY26), Swiggy reported a net loss of Rs 1,197 crore year-on-year (YoY), nearly doubling the Rs 611 crore loss from the same period last year (Q1 FY25).
On a quarter-on-quarter (QoQ) basis, the Bengaluru-based company incurred a net loss of Rs 1,081 crore in the previous quarter (Q4 FY25), as noted in its stock exchange filing. These escalating losses are primarily attributed to the financial pressures within its Quick Commerce division, Instamart.
Both Zomato and Swiggy have previously experimented with higher platform fees on high-demand days. If they observe no adverse impact on order volumes, they often retain the new fee structure.
Zomato has executed five fee hikes in less than two years, reflecting a 400 percent increase. This trend aligns with Swiggy’s practices.
Restaurant owners are compelled to increase menu prices due to the commission rates imposed by the Swiggy-Zomato duopoly, which can reach up to 35 percent, making online orders typically over 50 percent pricier than dining in, as shown by multiple surveys.
These companies have also faced ongoing criticism for not enhancing worker conditions despite the regular fee increases for consumers.
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Point of View
It's essential to recognize the implications of Swiggy's fee increase amidst rising losses. While the company seeks to capitalize on festive demand, restaurant owners and consumers face significant financial strains. It remains crucial for Swiggy to balance profit and social responsibility, especially concerning worker conditions and fair pricing.
NationPress
19/08/2025
Frequently Asked Questions
Why did Swiggy increase its platform fee?
Swiggy increased its platform fee to Rs 14, an increase of Rs 2, due to a spike in customer transactions during the festive season.
How much has Swiggy's platform fee increased over time?
Swiggy's platform fee has risen from Rs 2 in April 2023 to Rs 14 currently, marking a 600 percent increase in over two years.
What financial challenges is Swiggy facing?
Swiggy reported a net loss of Rs 1,197 crore in the June quarter, nearly double its loss from the previous year, mainly due to pressures in its Quick Commerce division.
What impact does the fee increase have on restaurant owners?
The increase in platform fees leads restaurant owners to raise menu prices, resulting in online orders being more than 50 percent costlier than dining in.
How have competitors responded to similar market conditions?
Zomato, a competitor, has also raised its platform fees multiple times, reflecting a broader trend in the food delivery industry.
