Swiggy raised its platform fee from INR 7 to INR 10 per order on its food delivery service
The increase comes a day after Zomato also hiked its platform fee
This marks Swiggy's latest revenue optimisation move ahead of its planned IPO
Swiggy
has increased its platform fee to INR 10 from INR 7 per order on its food delivery service, marking a 43% rise, following rival Zomato’s suit.
Swiggy introduced the platform fee in April 2023 with an initial charge of INR 2 per order. The company increased it to INR 3 in October, followed by subsequent revisions to INR 5 in April this year and INR 6 in July. The latest increase to INR 10 is a 400% increase since Swiggy first introduced the platform fee,
This increase comes despite Swiggy’s statement in January this year denying plans for any significant platform fee hike. At the time, a Swiggy spokesperson told Inc42 that the company was “running small experiments to better understand consumer choices” and had no plans for a significant increase in the near term.
The fee revision comes as Swiggy continues to optimise its revenue streams ahead of its planned initial public offering (IPO). The company recently received shareholder approval to increase its IPO fresh issue size to INR 5,000 Cr from INR 3,750 Cr.
The platform fee has become a key revenue source for food delivery companies. Zomato’s platform fee revenue reached INR 75 Cr in Q2 FY25, marking a 41.5% increase from INR 53 Cr in Q1 FY25.
Swiggy reported revenue of INR 11,247 Cr in FY24, with the food delivery business generating a GOV of INR 24,717 Cr. The company’s losses narrowed by 44% to INR 2,350 Cr in FY24 from INR 4,179.3 Cr in FY23.
The fee increase aligns with Swiggy’s recent service expansions, including the launch of Swiggy Bolt for 10-minute food delivery in six cities and Swiggy XL EV fleet for bulk orders in Gurugram. The company is also piloting a premium membership programme, Rare Club, with annual fees starting from INR 50,000, aimed at high-end consumers.
Swiggy declined to comment on the development.
The platform fee increase comes ahead of the festive season, with both Swiggy and Zomato implementing the INR 10 platform fee within a day of each other. Zomato cited the festive season in its app notification, stating “This fee helps us pay our bills to keep Zomato running. To maintain services during the festive season, it has increased slightly.
