PC( The Economic Times)
New Delhi – Food delivery in India is set to get slightly more expensive as Swiggy has increased its platform fee by 17% to 17.58 per order (inclusive of GST), up from ₹14.99 earlier. The hike comes just days after rival Zomato (operated by Eternal Ltd) implemented a similar increase, pushing both major players to charge roughly the same effective fee of *17.58 per order. According to details visible on the Swiggy app, the revision adds 2.59 per order (pre-GST component). The company stated that the increase is intended to help cover the costs of “operating and maintaining the platform.”
Parallel Moves Highlight Sector Pressures.
Zomato had raised its platform fee by about 19% last week, taking the pre-GST charge to ₹14.90 per order (which, with GST, also totals 17.58 for customers). This near-synchronised pricing reflects the duopolistic nature of India’s food delivery market, where Swiggy and Zomato together command the lion’s share.
Both platforms first introduced nominal platform fees around 2023 (starting as low as ₹2), but have steadily revised them upward multiple times. Swiggy’s latest hike is its fourth increase in the past seven months, while Zomato has also made frequent adjustments, including jumps during festive seasons.
Why the Hikes Now? Industry observers point to structural cost pressures squeezing margins across the ecosystem: Rising input costs for restaurants.Higher LPG prices and supply constraints.Elevated fuel expenses linked to crude oil prices these factors have impacted restaurants and delivery partners alike. Platforms appear to be passing on a portion of the burden to consumers through incremental fee adjustments, aiming to improve unit economics and support long-term sustainability.
On Tuesday, Swiggy shares traded largely flat at around 275-276 on the BSE, showing minimal movement. The stock has faced pressure recently, declining over 10% in the past month and nearly 40% over six months. In contrast, Eternal Ltd (Zomato’s parent) saw its shares gain around 2-5% following its own fee hike announcement, with some brokerages expressing optimism about improved margins and long-term profitability.
What This Means for Consumers. The platform fee is a fixed per-order charge applied on top of delivery fees and restaurant prices. While the individual increase (₹2.59) may seem modest, frequent users could see a noticeable rise in monthly spending. Social media reactions have already included frustration, with some users joking “just learn cooking” or threatening to reduce orders.
As India’s two dominant food delivery giants continue to mirror each other’s monetisation strategies, customers can expect further recalibration in the sector as companies focus on narrowing losses and building sustainable profits. This latest round of hikes underscores a broader shift in the hyper-competitive food delivery space from aggressive growth at any cost to a more balanced focus on profitability in a high-cost operating environment.