Swiggy hikes platform fee to Rs 14 to boost profitability during festive season rush

At the current levels, the platform fee would give the company an additional income of Rs 2.8 crore each day or Rs 8.4 crore each quarter and Rs 33.6 crore in a year.

Food delivery major Swiggy has hiked the platform fee it charges on every food delivery order to Rs 14 as more customers transact on the platform during the festive season. The company has hiked the fee by Rs 2, from Rs 12 earlier, as it looks to make each order more profitable and boost its bottom line.

Swiggy was first to begin collecting a platform fee back in April 2023 to improve its unit economics. Since then, the company has gradually increased the platform fee as it saw no impact on order volumes despite additional costs.

While a Rs 2 increase on each order may seem immaterial to users, it helps companies like Swiggy improve their financial health given the number of orders they fulfill each day.

Swiggy did not respond to Moneycontrol's queries.

Swiggy delivers over 2 million orders each day and the platform fee, and at the current levels, the platform fee would give the company an additional income of Rs 2.8 crore each day or Rs 8.4 crore each quarter and Rs 33.6 crore in a year.

While the fee has been hiked for now, it is possible Swiggy reduces the platform fee back to Rs 12 during non-festive days later.

However, both Eternal’s Zomato and Swiggy have tested a higher platform fee on high-demand days in the past and if they saw no impact on order volumes, they have stuck to their new structure of the platform fee.

The platform fee was as little as Rs 2 back in April 2023 but has been Rs 10 or higher after the two companies tested a higher fee around new year’s eve last year.

Swiggy has made such a move at a time when its losses have increased, largely on the back of increased investments in Instamart, its quick commerce unit.

Swiggy on July 31 reported that its net loss widened almost 96 percent year-on-year (YoY) to Rs 1,197 crore in the first quarter (Q1) of financial year 2025-26 (FY26), up from Rs 611 crore in the same period a year ago.

The Bengaluru-based firm had reported a loss of Rs 1,081 crore in the previous quarter, as rapid expansion in its quick commerce vertical Instamart took a toll on the company’s bottom line.

Swiggy’s revenue from operations rose 54 percent YoY to Rs 4,961 crore in Q1, up from Rs 3,222 crore a year ago. It had reported a revenue of Rs 4,410 crore in the previous quarter.

In comparison, its chief rival Zomato posted a massive 90 percent year-on-year (YoY) decline in quarterly profit at Rs 25 crore in Q1, while its revenue rose 70.4 percent YoY to Rs 7,167 crore.