Swiggy is likely testing with a larger platform price for high demand events, such as holiday days, when it has to pay the fleet more and cover operational expenses before going back to its previous setup. It used to cost Rs 12 but has now gone up.
Swiggy Hikes Platform Fee
Food delivery behemoth Swiggy has raised the platform fee it charges for each meal delivery order to Rs 14 in response to the holiday season, when more people use the service. In an effort to increase the profitability of each purchase and strengthen its bottom line, the firm raised the price from Rs 12 to Rs 2.
In an effort to boost its unit economics, Swiggy was the first to start collecting a platform charge in April 2023. Since then, the business has progressively raised the platform charge since, in spite of the extra expenses, it did not see any change in order volumes.
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A Rs 2 rise on each purchase may not seem like much to customers, but considering how many orders Swiggy and other businesses process every day, it helps them become more financially stable.
Wealthscopenews did not get a response from Swiggy
Swiggy delivers more than two million orders per day in addition to the platform charge, which at the present rate would bring in an extra Rs 2.8 crore per day, The company earns ₹8.4 crore every quarter, amounting to ₹33.6 crore in a year.
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Although Swiggy has raised the cost for the time being, it is Practical that it may lower it to Rs 12 in the days that are not holidays.
Swiggy and Zomato Test Higher Platform Fees
Both Swiggy and Zomato, Eternal, have, however, experimented with increased platform fees on days with strong demand in the past. If they saw no change in order numbers, they have Secured to their current platform cost structure.
However, when the two businesses tried a larger charge around New Year’s Eve last year, it has since increased to Rs 10 or more.
Swiggy took this action at a time when its losses have grown, mostly as a result of higher expenditures in its rapid commerce division, Instamart.
On July 31, Swiggy said that its net loss increased from Rs 611 crore in the first quarter (Q1) of the fiscal year 2025–26 (FY26) to Rs 1,197 crore, an over 96 percent year-over-year (YoY) increase.
Swiggy vs Zomato: Revenue and Profit Trends
The Bengaluru-based company’s fast commerce segment, Instamart, had significant growth, which negatively impacted its bottom line, resulting in a loss of Rs 1,081 crore in the prior quarter.
The food delivery platform Swiggy registered a 54% year-on-year jump in operating revenue, reaching ₹4,961 crore in Q1 against ₹3,222 crore in Q2. On the other hand, Zomato saw its Q1 profit slump 90% YoY to ₹25 crore.
Despite the profit decline, Zomato’s revenue increased by 70.4% YoY, reaching Rs 7,167 crore.
On the other hand performance highlights a difference in profitability and revenue growth between the two companies.