Over the past few weeks, India’s major food delivery players, Swiggy and Zomato, have substantially raised their platform charges as part of their efforts to strengthen profitability and counter rising operating costs. The fee hike comes ahead of the festive season when they experience a sharp surge in orders.
Swiggy has now raised its platform fee to ₹15 per order in certain cities, its third revision within a span of three weeks. Earlier hikes saw charges move from ₹12 to ₹14. This is the steepest jump since April 2023, when the platform fee was first introduced at just ₹2 per order.
With Swiggy processing more than 20 lakh orders daily, this new pricing could potentially bring in revenues of about ₹3 crore per day, ₹54 crore quarterly, and around ₹216 crore annually.
Zomato has also increased its fee, moving from ₹10 to ₹12 per order, with the change aligned to the seasonal spike in demand. Historically, Zomato has made small, step-wise increments of ₹2 during busy periods, indicating a strategy of experimenting with rates before making them permanent.
“The strategy of raising platform fees ahead of the festive season and retaining the higher rate later has been in place since last year. It helps shore up margins without touching customer discounts or delivery partner payouts,” said Karan Taurani, senior vice-president at Elara Securities.
He added, “For each rupee of platform fee, Zomato sees a 22 basis point positive impact on take rates, and about ₹1,100 crore in adjusted EBITDA gains on a five- to six-year basis. But given the fee is initially being trialled in 40% of markets, the near-term benefit will be modest.”
Both companies charge this platform fee, a flat levy (inclusive of GST) applied on each food delivery order, over and above delivery charges and applicable taxes. The amount is not uniform across locations or time periods; instead, it fluctuates based on local demand and market dynamics.
The steady push to raise these fees comes as the companies face mounting financial pressure. Swiggy’s net losses nearly doubled year-on-year in Q1 FY26 to ₹1,197 crore, driven by heavy investments, while Zomato saw a 90% decline in net profit during the same period despite reporting revenue growth.