Food delivery giant Swiggy has once again raised its platform fee for delivery orders, increasing it by ₹2 to ₹14. The company cited a rise in customer transactions during the festive season as the reason for the hike, aiming to capitalise on the surge in demand.
A Steady Climb in Fees
Swiggy has been steadily increasing platform charges over the past two years. What began as a modest ₹2 fee in April 2023 has now ballooned to ₹14, marking a staggering 600% rise. Just in 2024, the fee climbed from ₹6 in July to ₹10 in October, and now, to ₹14 in August 2025.
Financial Struggles Behind the Move
Despite higher platform revenues, Swiggy’s financials remain strained. The company posted a net loss of ₹1,197 crore in Q1 FY26, nearly double the ₹611 crore loss in the same quarter last year. Losses deepened primarily due to Instamart, Swiggy’s quick-commerce arm, which continues to burn cash in a fiercely competitive space. On a quarter-on-quarter basis, Swiggy’s losses widened from ₹1,081 crore in Q4 FY25.
Industry-Wide Trend
Swiggy isn’t alone in hiking platform fees. Rival Zomato has also implemented five increases in under two years, reflecting a 400% rise. Both players test higher charges during peak demand days, and if order volumes remain unaffected, they make these hikes permanent.
Impact on Consumers and Restaurants
The duopoly’s growing fees and commission rates — reportedly as high as 35% — are taking a toll on both consumers and restaurant partners. Many eateries inflate menu prices on delivery apps to offset high commissions, making online food orders up to 50% more expensive than dining in. Surveys indicate rising dissatisfaction among customers, while workers and delivery partners continue to criticise the platforms for not improving working conditions despite higher consumer fees.
What Lies Ahead
With both Swiggy and Zomato locked in an aggressive race for profitability, consumers may have to brace for more hikes. The festive season fee increase may just be another step in a long-term strategy to offset mounting losses.
