Swiggy Orders Will Become Expensive For Customers: Platform Fee Can Be Increased By 100% (IPO Is The Reason?)


Mohul Ghosh

Mohul Ghosh

Jan 23, 2024


Food delivery platform Swiggy is considering hiking its platform fee on food orders from Rs 5 currently to Rs 10 in the coming month, according to screenshots viewed by Moneycontrol. This move would allow Swiggy to trim losses as it gears up for a public listing later this year.

Swiggy Orders Will Become Expensive For Customers: Platform Fee Can Be Increased By 100% (IPO Is The Reason?)

In April 2023, it was reported that Swiggy had introduced a platform fee of Rs 2-3 on select orders. Over subsequent weeks, it steadily increased this to Rs 5 for most customers as volumes held up despite the additional charge.

Swiggy Denies Plans for Significant Fee Hike

When contacted by Moneycontrol, Swiggy stated the Rs 10 fee is one of many experiments it keeps testing. While not confirming plans for a major imminent increase, a spokesperson said Swiggy has no plans for significant hikes in the near term.

The company is likely tweaking fees incrementally to gauge consumer response before making a call on a permanent hike. Swiggy earlier followed a similar approach when first introducing the platform charges.

Push For Profitability Before IPO

Swiggy co-founder Sriharsha Majety confirmed in Davos that Swiggy’s IPO plans are progressing, hence the renewed push to turn profitable.

While food delivery growth has slowed, quick commerce arm Instamart will drive expansion going forward. To keep growing food orders, Swiggy launched budget brand Pockethero, but simultanously looks to optimize costs via moves like the platform fee.

Competitor Zomato also upped its fee to Rs 5 after initially denying plans for platform charges. It temporily spiked charges further to Rs 9 in some markets on New Year’s Eve to capitalize on record order volumes.

Analysts however feel consumers may not accept charges beyond Rs 10 yet. Both majors will have to balance profit focus with retaining budget-conscious users as market maturity develops.


Mohul Ghosh
Mohul Ghosh
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