Swiggy once again hikes platform fee to Rs 14 ahead of festive season: Report

Food delivery major Swiggy has once again raised the platform fee it charges on each order to Rs 14 in select regions, up from Rs 12 earlier, as demand surges during the festive season, according to media reports.

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The hike is aimed at improving profitability per order and strengthening the company’s bottom line. Swiggy, which first introduced the platform fee in April 2023 at Rs 2 to improve unit economics, has steadily raised the charge without seeing any adverse impact on order volumes.

With over two million orders processed daily, the current fee could generate an additional income of Rs 2.8 crore each day, Rs 8.4 crore each quarter, and Rs 33.6 crore annually for the company. Reports indicate that the Rs 2 increase was rolled out in select markets on Friday and may be rolled back once the festive demand cools.

At present, the Rs 14 platform fee charged by Swiggy is inclusive of GST. Zomato, meanwhile, imposes a Rs 10 charge per order, excluding GST. While the fee is small compared with the average Rs 500-Rs 600 order value on these platforms, it plays a significant role in improving consolidated margins.

Swiggy has previously raised the fee to Rs 10 or more after testing the structure during New Year’s Eve in 2023, and Zomato followed suit, last hiking its platform fee in October 2024.

The timing of the increase comes as Swiggy faces widening losses, largely due to higher investments in its quick commerce arm Instamart. On July 31, the Bengaluru-based firm reported a near 96% year-on-year (YoY) jump in net loss to Rs 1,197 crore in Q1 FY26, compared with Rs 611 crore in the same period last year. Losses had already reached Rs 1,081 crore in the previous quarter. Operating revenue, however, grew 54% YoY to Rs 4,961 crore in Q1, up from Rs 3,222 crore a year ago and Rs 4,410 crore in the previous quarter.

By contrast, Zomato posted a 90% YoY decline in quarterly profit to Rs 25 crore in Q1, even as revenue climbed 70.4% YoY to Rs 7,167 crore.