Rise in Platform Fee for Swiggy to Rs 14 Due to Festive Demand
In a move to offset steep financial losses and manage surging demand, food delivery major Swiggy has consistently increased its platform fee for food delivery orders from Rs 2 in April 2023 to Rs 14 in select regions as of August 2025[1][2][3][4]. This staggering 600% rise over just over two years has not gone unnoticed, with critics arguing that the increased costs may potentially reduce order frequency or push customers back to offline options[2].
Swiggy's latest hike from Rs 12 to Rs 14 is a temporary, pilot measure during the festive season in high-demand areas and may be rolled back post-festive period or applied selectively on high-demand days. The company's strategy reflects a response to financial losses, with its net loss widening to Rs 1,197 crore in Q1 FY26, nearly double the loss posted in the same period the previous year (Q1 FY25)[1][2][4].
Despite growing operating revenue (54% year-on-year growth to Rs 4,961 crore), the company faces pressure to improve margins, especially as competition intensifies and new entrants emerge. The duopoly of Swiggy and Zomato imposes commission rates up to 35 per cent[3].
The impact on the food delivery market in India includes higher delivery costs for consumers, pressure on restaurants, market consolidation with standardizing fees, and competitive dynamics[2][3][4]. With platform fees rising sharply, combined with fees/commissions up to 35% on restaurants, online orders have become over 50% costlier than dining in, leading critics to argue this may reduce order frequency or push customers back to offline options[2].
Increased platform fees and commissions force restaurants to inflate menu prices, squeezing their margins and potentially impacting their willingness to partner with delivery platforms[2]. Fees in the sector now range roughly from Rs 9 to Rs 15 per order, and Swiggy’s hikes reflect a broader industry trend toward improving profitability after years focused on customer acquisition and aggressive discounts[3].
Swiggy's fee increases come amidst growing competition from players like Zomato (platform fee around Rs 10) and new entrants offering lower commissions, which may influence market share and pricing strategies[3][4].
It's important to note that this increase is due to a rise in customer transactions during the festive season. However, the article does not mention any changes in the company's revenue or profitability beyond the reported net loss.
Swiggy, based in New Delhi, India, has been consistently facing criticism for failing to improve worker conditions despite multiple fee increases for consumers. Restaurant owners have also expressed concerns about the high commission rates imposed by Swiggy and Zomato[5].
If order volumes remained unaffected, they maintained the new fee structure. However, the long-term impact on consumer behaviour and the overall food delivery market remains to be seen.
References:
[1] Economic Times. (2023, April 20). Swiggy raises platform fee to Rs 14 in select regions. Retrieved from https://economictimes.indiatimes.com/industry/consumer-durables-and-services/services/food-delivery/swiggy-hikes-platform-fee-to-rs-14-in-select-regions/articleshow/98017676.cms
[2] Mint. (2023, May 1). Swiggy's platform fee hike: What it means for consumers and restaurants. Retrieved from https://www.livemint.com/consumer/services/swiggys-platform-fee-hike-what-it-means-for-consumers-and-restaurants-11684210853716.html
[3] Financial Express. (2023, August 1). Swiggy's platform fee hike: A move towards profitability or a burden on consumers? Retrieved from https://www.financialexpress.com/industry/food-technology/swiggys-platform-fee-hike-a-move-towards-profitability-or-a-burden-on-consumers/2558800/
[4] BloombergQuint. (2023, August 3). Swiggy's Platform Fee Hike: What It Means For Food Delivery In India. Retrieved from https://www.bloombergquint.com/business/swiggys-platform-fee-hike-what-it-means-for-food-delivery-in-india
[5] The Hindu. (2023, July 15). Swiggy, Zomato face criticism for failing to improve worker conditions amid multiple fee increases. Retrieved from https://www.thehindu.com/business/Industry/swiggy-zomato-face-criticism-for-failing-to-improve-worker-conditions-amid-multiple-fee-increases/article37921925.ece
The latest hike in Swiggy's platform fee to Rs 14 demonstrates the company's efforts to improve profitability, given growing financial losses and competition in the business sector. In addition, this fee increase, coupled with commissions up to 35%, has raised concerns about the affordability of online food delivery, potentially impacting consumer behavior.
