Swiggy increases platform fee to ₹14 to boost profits
What's the story
Swiggy, a leading player in the food delivery industry, has increased its platform fee for every order to ₹14. The hike comes as more customers are using the service during the festive season. The company has raised the fee by ₹2 from earlier levels of ₹12 in a bid to make each order more profitable and improve its bottom line.
Fee evolution
Swiggy first introduced a platform fee in April 2023
Swiggy first introduced a platform fee in April 2023 to improve its unit economics. The company has since been gradually increasing the fee, noting no impact on order volumes despite the additional cost. The ₹2 hike may seem small to customers but can significantly improve Swiggy's financial health given the number of orders it handles daily.
Revenue projection
Potential revenue boost for Swiggy
Swiggy handles over two million orders daily. At the new platform fee, the company could generate an additional ₹2.8 crore per day, ₹8.4 crore per quarter, and ₹33.6 crore annually. While the fee has been raised for now, there is a possibility that Swiggy may reduce it back to ₹12 during non-festive days later on.
Financial outlook
Swiggy's losses have widened
Swiggy's losses have widened, mainly due to increased investments in Instamart, its quick commerce unit. In Q1 of FY26, the company's net loss nearly doubled year-on-year (YoY) to ₹1,197 crore from ₹611 crore in the same period last year. However, revenue from operations grew 54% YoY to ₹4,961 crore in Q1, up from ₹3,222 crore a year ago.