Shares of Swiggy and Zomato rose up to 3% on May 16 after the food delivery majors reduced membership benefits ahead of monsoon season.
Swiggy One and Zomato Gold users now face a "rain surcharge" on food orders. The firms were earlier levying no surcharge to customers with membership benefits.
At 11:25 am, Swiggy shares on BSE were trading 3.3% higher at Rs 327 apiece while those of Zomato-parent Eternal were trading 1% higher at Rs 244.86 apiece.
According to the latest update, Zomato Gold members/Swiggy One users will be treated on par with non-members and made to pay an additional amount for food deliveries, despite them paying an additional enrolment fee for the loyalty programme.
The move comes at a time when Zomato and Swiggy are both under immense investor pressure to improve their profit profile.
Eternal, which runs Zomato, reported a 78 percent year-on-year (YoY) decline in quarterly profit after tax (PAT) at Rs 39 crore in the fourth quarter (Q4) of financial year 2024-25 (FY25), down from Rs 175 crore in the same period a year ago. It had reported a PAT of Rs 59 crore in Q3FY25.
Swiggy, on the other hand, saw its net losses widen further. The company reported a net loss of Rs 1,081.18 crore for the fourth quarter of financial year 2025. This marks a rise of over 94 percent from the Rs 554.77 crore net loss reported in Q4FY24.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
