Food delivery major Swiggy has raised its platform fee to ₹15 per order, marking its steepest hike yet. This comes weeks after a brief Independence Day surge to ₹14 and follows rival Zomato’s ₹12 hike. Introduced in April 2023 at just ₹2, platform fees have steadily risen, helping delivery firms boost margins during peak festive demand.
Third Hike in Three Weeks
Swiggy has raised its platform fee for the third time in as many weeks, pushing it to ₹15 per order. This is the highest levy since the fee was first introduced in April 2023. The charge will apply across all customers, including members of Swiggy’s subscription plan, and comes amid rising order volumes during the festive season.
Recent Fee Trends
Earlier, Swiggy briefly raised its platform fee to ₹14 on Independence Day, before rolling it back to ₹12. With festive orders peaking again, the Bengaluru-based company has now implemented its steepest hike.
Platform fees were initially just ₹2 per order in 2023, but both Swiggy and Zomato began testing higher charges around New Year’s Eve 2023, with rates largely staying above ₹10 since then.
Impact on Customers
The platform fee is levied in addition to delivery charges, GST, and restaurant fees. Importantly, it is not uniform across cities or days, and often fluctuates depending on demand levels. For frequent customers and even subscribers of Swiggy One, this hike translates into higher overall order costs.
Competition With Zomato
Swiggy’s hike comes soon after rival Zomato increased its platform fee to ₹12, aiming to capitalise on the surge in demand during the festive season. Both players are using platform fees as a way to improve unit economics and margins in India’s competitive food delivery market.
Market Reaction
Shares of Swiggy closed in the green at ₹430.65 on the BSE on September 3, reflecting positive investor sentiment around the fee hike. The move is seen as part of Swiggy’s broader strategy to balance growth with profitability, especially during high-demand festive periods.
