Swiggy Instamart introduces festive handling fee for Holi week
What's the story
Ahead of the Holi celebrations, Swiggy's Instamart has introduced a new 'festive handling charge' for orders placed during the week. The additional fee is similar to other handling and surge charges commonly imposed by quick commerce platforms. It is the first time Swiggy has implemented a surge fee matching its platform fee, varying between ₹8.90 and ₹20 depending on location.
Fee types
Handling and surge fees: Key distinctions
Handling fees remain uniform across operations, unlike surge fees levied during peak hours. Ever since Zomato went public in 2021, food delivery and quick commerce platforms in India have been looking for ways to earn more revenue. Neither Instamart nor Blinkit levies platform fee, while Zepto does. In the food delivery space, Zomato and Swiggy have introduced platform fee—an additional charge on every order apart from delivery and restaurant commissions.
Revenue boost
Additional charges and their impact on revenue
Along with platform fees, Zomato and Swiggy charge delivery fees depending on distance and demand, packaging costs, and surge pricing during peak hours. Some users may also be charged a convenience fee for certain services. While the platform fee may appear trivial, it adds up to both companies' revenue when multiplied by millions of orders every day. For instance, between August 2023 and March 2024, Zomato collected around ₹83 crore from such fees alone.