Swiggy Makes Food Delivery More Expensive Ahead Of Festive Season

Food delivery platform Swiggy has reportedly increased its platform fee to ₹15 per order, marking the third hike in three weeks and its steepest to date. The move comes as the company seeks to capitalize on rising demand during the festive season while expanding its margins.

This comes a day after Eternal hiked Zomato's platform fee to ₹12 from ₹10 ahead of the festive season. The move represents a 20% hike and comes less than a year after the last revision.

Both companies rely on these charges as an additional revenue stream, especially during periods of high consumption.

The platform fee, which is levied in addition to delivery charges, GST, and restaurant commissions, varies across cities and days depending on demand.

Price Hikes So Far

Earlier in August, Swiggy briefly increased the charge to ₹14 during Independence Day before rolling it back to ₹12. With order volumes climbing again, the company has now pushed the fee to its highest level yet.

According to reports, the hike could generate up to ₹3 crore in daily revenue, compared to around ₹2.4 crore when the fee was ₹12.

Swiggy was down 2% at ₹422, minutes before market close on Thursday. Year-to-date, the stock has shed 22% in value.

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