Swiggy To Charge 2% Additional Fee From Restaurants

Foodtech major Swiggy has asked its restaurant partners to pay an additional 2% collection fee on all orders, starting February 16. 

The company told restaurant partners in an email that the fee would be deducted from their payouts, The Arc reported. 

“This fee is for facilitating seamless customer payments on the Swiggy platform,” the report quoted the email as saying.

It added that Swiggy’s email has been receiving backlash from the restaurant operators.  

Meanwhile, sources close to the company told Inc42 that the email has been sent to only select restaurants and they can share their views on the matter with the company.

The development comes at a time when restaurants are already at war with Swiggy and its rival Zomato over concerns about private labelling.

The National Restaurant Association of India (NRAI) and the Federation of Hotel & Restaurant Associations of India (FHRAI) have said that they would approach the CCI over alleged anti-competitive practices of Zomato and Swiggy and their respective 10-minute food delivery services Blinkit Bistro and Snacc. 

Besides restaurant partners, Swiggy charges platform fees from its customers.

The move to hike the fee charged from restaurants comes days after Swiggy reported its financial numbers for the third quarter of the current fiscal year (Q3 FY25). The company’s consolidated net loss widened 39.1% to INR 799 Cr during the quarter from INR 574.4 Cr in the year-ago quarter. Sequentially, loss increased 27.7% from INR 625.5 Cr.

Revenue from operations rose nearly 31% to INR 3,993.1 Cr in Q3 FY25 from INR 3,048.6 Cr in Q3 FY24. On a quarter-on-quarter (QoQ) basis, it rose 10.9% from INR 3,601.4 Cr.

Shares of Swiggy ended Tuesday’s (Friday 11) trading session 7.86% lower at INR 333.70 on the BSE.