Swiggy Raises Platform Fee to ₹14 Amid Festive Season Demand Surge

Food delivery giant Swiggy has increased its platform fee from ₹12 to ₹14 per order, citing higher festive season demand and a push toward improved profitability. The move comes at a time when the company is grappling with mounting losses, especially due to heavy investments in its quick commerce arm, Instamart.

Swiggy Hikes Platform Fee During Festive Season

Swiggy initially introduced the platform fee in April 2023, starting at just ₹2 per order. Over time, this fee has gradually increased, with no visible impact on order volumes. The latest hike of ₹2 per order comes as the platform handles millions of daily transactions, especially during the festive season.

For consumers, the increase may appear negligible, but at Swiggy’s scale, it significantly contributes to revenue. The company is expected to earn an additional ₹2.8 crore per day, translating to ₹8.4 crore per quarter and ₹33.6 crore annually from this hike alone.

Why Swiggy Increased Platform Fee

The primary reason behind the increase is to make each order more unit-economical. Despite strong revenue growth, Swiggy’s losses nearly doubled year-on-year (YoY) in Q1 FY26, highlighting the need for stronger financial discipline.

Swiggy has historically tested higher platform fees during high-demand days, such as New Year’s Eve, and found that order volumes remained unaffected. This gave the company confidence to stick to its revised structure during festive peaks.

Impact on Customers and Orders

Although a ₹2 hike per order may seem insignificant to individual users, the collective impact is substantial. For customers, the cost remains relatively low compared to the overall order value, meaning their behavior is unlikely to change.

Meanwhile, Swiggy benefits immensely. Delivering over 2 million orders daily, the increased platform fee ensures a steady revenue stream that cushions the company against operational losses.

Swiggy’s Financial Performance in Q1 FY26

Swiggy’s financial results show a widening net loss of ₹1,197 crore in Q1 FY26, nearly a 96% increase from ₹611 crore YoY. The previous quarter also recorded losses of ₹1,081 crore, highlighting how rising Instamart expenses are impacting the bottom line.

However, revenue growth paints a different picture. Swiggy reported a 54% YoY increase in operating revenue, reaching ₹4,961 crore compared to ₹3,222 crore last year. This shows that despite mounting losses, customer demand and transaction volumes are robust.

Competition With Zomato

Swiggy’s biggest rival, Zomato, also relies on platform fees to improve unit economics. Zomato reported a 90% YoY decline in profit in Q1, dropping to ₹25 crore, despite a sharp 70.4% rise in revenue to ₹7,167 crore.

Both companies are experimenting with dynamic platform fees, raising charges during high-demand periods while sometimes lowering them during leaner days. This strategy ensures profitability without discouraging customer engagement.

Outlook: Will Swiggy Roll Back Fees Post-Festive Season?

While Swiggy has raised fees for the festive period, it may revert to the ₹12 fee once demand normalizes. The company has a history of adjusting fees depending on consumer behavior and order volumes.

Industry experts believe that the current hike will continue as long as order volumes remain stable. If consumers do not resist the change, Swiggy is likely to maintain or even expand the fee model to strengthen its financials.

Conclusion

Swiggy’s decision to raise its platform fee to ₹14 highlights the challenges food delivery platforms face in balancing growth, profitability, and customer satisfaction. While users may not feel the pinch of a small hike, the move significantly boosts Swiggy’s bottom line at scale. With competition heating up between Swiggy and Zomato, both players will continue experimenting with pricing strategies to achieve sustainable growth.