Zomato, Swiggy, Flipkart double down on premium memberships to boost profits

Leading online delivery and e-commerce platforms in India are ramping up efforts to boost profitability by rolling out premium subscription tiers beyond their existing loyalty programs. These higher-value memberships are aimed at power users who prioritize speed, reliability, and exclusive perks over price sensitivity.

Premium offerings reshape food delivery and e-commerce

Zomato’s VIP Mode

Zomato is piloting a ‘VIP Mode’ priced at ₹50 per order. Customers opting in receive the fastest possible deliveries, premium concierge support, top-rated delivery partners, and refunds on delayed orders.

Swiggy’s One BLCK

Swiggy, which launched One BLCK in December 2024 at ₹299 for three months as an invite-only premium tier, has now begun expanding access. Positioned as the “business-class equivalent” of food delivery, it offers priority deliveries, on-time guarantees with ₹75 refunds, and complimentary dining perks such as cocktails or desserts.

Flipkart Black

E-commerce giant Flipkart introduced Flipkart Black at ₹1,499 annually (₹990 under an early-bird scheme). Benefits include a free 1-year YouTube Premium subscription, 5% SuperCoins cashback, and exclusive extra discounts—over and above the Flipkart Plus loyalty program.

Why Platforms Are Pushing Premium Tiers

• Margin pressures: Quick commerce expansions have strained profitability.

• Financial performance:

  • Zomato’s parent, Eternal, reported a 90% YoY profit decline in April–June at ₹25 crore, though revenues surged 70% to ₹7,167 crore.

  • Swiggy’s losses widened to ₹1,197 crore from ₹611 crore a year earlier, despite a 52% jump in revenues to ₹5,048 crore.

• User behavior: Frequent orderers are ready to pay for speed, reliability, and premium services.

• Competitive dynamics: With ONDC and low-fee entrants, differentiation now hinges on quality of service rather than discounts.

Expert Insights

Industry analysts note this is only the beginning of subscription stratification. Premium tiers create a “moat” around high-value customers. However, critics argue platforms are monetizing what used to be standard service, raising concerns about fairness.

Conclusion

The growing emphasis on multi-layered subscription models by leading players like Zomato, Swiggy, and Flipkart highlights a strategic shift in India’s digital economy—balancing aggressive growth with the need for sustainable profitability.

By introducing premium tiers that cater specifically to high-frequency and high-value users, these platforms are attempting to lock in long-term loyalty while monetizing customers who value speed, reliability, and exclusive perks.

This approach allows companies to maximize revenue without increasing costs for their broader user base, thereby creating a differentiated service ecosystem. However, the success of these initiatives will depend heavily on delivering consistent value to subscribers.

Premium services must feel like genuine enhancements, offering tangible benefits that justify the additional cost. If executed well, these memberships could redefine customer expectations and establish a new benchmark for service quality.

But if users perceive them as restricting basic services, platforms risk alienating their customer base.