Swiggy and Zomato Hike Platform Fees

Swiggy has repeatedly increased its platform fee for food delivery orders, raising it from Rs 12 to Rs 14, and then to Rs 15 in certain high-demand areas. This strategy aims to boost profitability and offset significant net losses, which doubled to Rs 1,197 crore in the April-June quarter, largely due to investments in its quick-commerce arm, Zomato — Instamart. Rival Zomato has followed suit, raising its platform fee to Rs 12 from Rs 10. These fee adjustments, which include GST for Swiggy and exclude it for Zomato, are implemented to capitalize on the festive season demand and improve unit economics. While the fees are a small portion of the average order value, they are projected to generate substantial additional daily and quarterly revenue for both companies. The moves come amidst tempering growth in the online food delivery segment and the emergence of new competition, such as Rapido's Ownly, which offers lower commission rates to restaurants.