Swiggy Instamart Introduces ‘Festive Handling’ Fee For Holi Week

SUMMARY

Quick commerce major Swiggy Instamart has introduced a ‘festive handling charge’ for orders placed during the Holi week

The extra fee, similar to other handling and surge charges used by quick commerce platforms, marks Swiggy’s debut in implementing a surge fee equal to its platform fee

The charge varies by location, ranging from INR 8.5 to INR 20

Quick commerce major Swiggy Instamart has introduced a ‘festive handling charge’ for orders placed during the Holi week.

The extra fee, similar to other handling and surge charges used by quick commerce platforms, marks Swiggy’s debut in implementing a surge fee equal to its platform fee.

However, the charge varies by location, ranging from INR 8.5 to INR 20.

Inc42 has reached out to Swiggy for comments on the development. The story will be updated based on its response.

While ‘handling’ fees stay the same, surge fees are usually applied during peak hours.

Notably, last year during Diwali season, Swiggy introduced “festive season platform fees”– which was then made a permanent feature on the platform.

This comes close on the heels of the All India Consumer Products Distributors Federation (AICPDF) filing a petition with the Competition Commission of India (CCI) against quick commerce players like Blinkit, Zepto and Swiggy Instamart alleging unfair pricing and monopolising the market.

According to the petition, these practices negatively impact more than 10 Mn offline mom-and-pop stores across the country.

Last year, the authority also wrote to union commerce minister Piyush Goyal, requesting to closely scan the rapid growth of these quick commerce giants. It further requested the minister to regulate the quick commerce space to protect small traders.

Later, the Department for Promotion of Industry and Internal Trade (DPIIT) also referred the complaint filed by AICPDF to the CCI regarding the matter.

It is pertinent to note that Blinkit, Instamart and Zepto cumulatively reported over $1 Bn in revenue in FY24.

Notably, the festive fee comes at a time when quick commerce apps are bleeding as the competition is intensifying in the sector. According to Bernstein, rising competition has set Blinkit and Swiggy Instamart off the adjusted EBITDA margin breakeven course by at least 12 months.

Notably, in Q3 FY25, Instamart raked in a loss of INR 527.68 Cr, up 70% YoY from INR 310.36 Cr. Meanwhile, its revenue jumped 114% YoY and 17% QoQ to INR 576.50 Cr in the quarter.

The vertical’s gross order value (GOV) grew 88% YoY to INR 3,907 Cr. Besides, its average order value (AOV) also increased 14% YoY and 7% QoQ to INR 534 Cr.