Ordering food online in India is becoming slightly more expensive, as Swiggy has increased its platform fee by around 17% to ₹17.58 per order, following a similar move by Zomato. This marks another step in a steady trend of rising charges across food delivery platforms.
Swiggy Hikes Platform Fee by 17%
Swiggy has raised its platform fee from ₹14.99 to ₹17.58 per order (inclusive of GST).
- This is a ~17% increase
- It is the fourth hike in the last 7 months
- The revised fee is now visible directly on the app during checkout
This fee is charged per order, over and above delivery charges, taxes, and food costs.
Zomato Had Already Increased Fees
Just days before Swiggy’s move, Zomato also raised its platform fee:
- Base fee increased to ₹14.90 (pre-GST)
- With GST, the effective cost is also ~₹17.58 per order
This means both platforms are now charging almost identical platform fees, continuing their pattern of mirroring each other’s pricing strategies.
Why Are These Fees Increasing?
The hikes are driven by multiple factors:
1. Push for Profitability
Food delivery has been a high-cost business with thin margins. Platform fees are now becoming a key revenue lever.
2. Rising Operational Costs
- Fuel prices
- Delivery logistics
- Tech infrastructure
All of these have increased, especially amid global tensions impacting oil prices.
3. Expansion into Quick Commerce
Companies like Swiggy and Zomato are investing heavily in instant delivery (10–15 min services), which increases costs and requires additional funding.
From ₹2 to ₹17.58: A Sharp Rise
Platform fees have seen a dramatic increase over the last few years:
- ₹2 per order in 2023
- Gradually increased to ₹6, ₹10, ₹12, ₹15
- Now at ₹17.58 per order
What started as a small convenience charge is now a meaningful component of your total bill.
Impact on Users
For consumers, the impact may seem small per order—but adds up:
- ₹15–₹20 extra per order
- Frequent users could pay ₹300–₹600 more monthly
- Combined with delivery + packaging charges, total costs rise significantly
At scale, with 4–4.5 million daily orders, even small fee hikes generate massive revenue for platforms.
Bigger Picture: End of the “Cheap Delivery” Era
This trend signals a shift in the industry:
- Earlier: Heavy discounts, low fees to gain users
- Now: Focus on profitability and sustainable pricing
Food delivery platforms are transitioning from growth mode to revenue optimization mode.
