After Zomato, Swiggy Hikes Platform Fee To INR 10 Per Order

After Zomato, Swiggy Hikes Platform Fee To INR 10 Per Order

SUMMARY

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.

swiggy price hike

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.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

After Zomato, Swiggy Hikes Platform Fee To INR 10 Per Order-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

After Zomato, Swiggy Hikes Platform Fee To INR 10 Per Order-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

After Zomato, Swiggy Hikes Platform Fee To INR 10 Per Order-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

After Zomato, Swiggy Hikes Platform Fee To INR 10 Per Order-Inc42 Media
After Zomato, Swiggy Hikes Platform Fee To INR 10 Per Order-Inc42 Media
You’re in Good company