Your favourite food delivery apps just got more expensive. Yes, both Swiggy and Zomato have quietly increased their platform fees once again, timing it perfectly with the festive season when Indians order food the most.
Swiggy And Zomato Hikes Platform Fee
Bengaluru-based Swiggy has been particularly aggressive with its pricing strategy. The company has raised its platform fees three times in three weeks, bringing the total to ₹15 per order, including GST. This represents a significant jump from earlier levels.
Not to be left behind, Gurugram-based Zomato has implemented a 20% increase in its platform fee, now charging ₹12 per order without GST. This coordinated move shows how both companies are thinking alike when it comes to revenue generation.
Daily Revenue From Platform Fees
Here is where things get more interesting for investors and customers alike:
- Swiggy processes nearly 20 lakh orders daily, which means they now earn approximately ₹3 crore every single day just from the platform fee.
- Zomato handles 23–25 lakh orders per day, generating around ₹3 crore daily revenue from the platform fees alone.
Combined, both platforms are collecting around ₹6 crore daily from platform fees, totaling nearly ₹2,200 crore annually from this single revenue stream.
Why Are Platform Fees Necessary?
A platform fee appears as a separate line item in your food delivery app. It sits on top of:
- Food cost
- Delivery charges
- Restaurant charges
- Surge pricing
- Packaging fees
- GST
Why There Is Increase In Platform Fee?
Platform fees serve multiple purposes for these companies:
- Cover operational costs: Running a massive delivery network is not cheap.
- Improve profit margins: Both companies are still struggling with profitability.
- Offset commerce losses: Services like Instamart and Blinkit are expensive to operate.
- Generate additional revenue during high demand, like festivals.
- Despite these fee increases, both companies continue to face significant financial challenges.
Financial Performance Of Swiggy And Zomato
Swiggy
In the quarter ending June 30, Swiggy’s financial results showed:
- Loss widened to ₹1,197 crore.
- Operating revenue increased 54% to ₹4,961 crore.
- The Quick Commerce division remains a major expense.
Zomato
Zomato’s recent quarterly performance revealed:
- Profit fell dramatically by 90% year-on-year to just ₹25 crore.
- Revenue increased 70% to ₹7,167 crore.
- Quick commerce operations continue dragging down overall profitability.
What Does This Mean For Customers?
The timing of these increases is not coincidental. With the festive season beginning, both companies expect:
- High order volumes.
- Increased customer spending.
- Greater willingness to pay premium prices.
- Your Food Bills Will Increase
For regular users, these changes mean a lot:
- Every order now costs ₹12–15 more in platform fees.
- Monthly food delivery expenses will increase significantly.
- Budget-conscious customers might reduce order frequency.
Swiggy and Zomato customers will accept the fee for the convenience of food delivery. Quick commerce is becoming increasingly important for customers as well, but it is expensive to operate, and platform fees have become a crucial part of the revenue for both delivery platforms.
The success of these fee increases will ultimately depend on whether customer demand remains strong despite the higher cost, especially as the festive season unfolds across India.
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