By Chaitanya
BBA Finance Graduate & 6+ Years of Experience in Stock market & Finance
India’s leading food delivery platform Swiggy, has once again made headlines with a temporary increase in its Swiggy platform fee. As the festive season of 2025 approaches, customers in select regions are now paying Rs 14.00 per order, a notable 17% jump from the previous Rs 12.00. This adjustment marks a significant 600% surge from the initial Rs 2.00 fee that Swiggy first introduced back in April 2023. This strategic move by Swiggy highlights a broader industry shift towards bolstering profitability after years of intense focus on customer acquisition. With over 2 million daily orders, this fee increase is poised to substantially boost Swiggy’s revenue, potentially adding an estimated Rs 2.8 crore to its coffers every single day.
The Evolution of Platform Fees in Food Delivery
The concept of a platform fee is relatively new in India’s online food delivery space. Swiggy pioneered this additional charge, separate from delivery fees, restaurant charges, and applicable GST, in April 2023 with a modest Rs 2.00 per order. Since then, the fee has seen a gradual yet consistent rise. By October 2024, it had escalated to around Rs 10 in various cities, and the latest hike in August 2025 brings it to Rs 14 for the festive period.
Competitor Zomato, while also adopting platform fees, has followed a slightly different trajectory. Zomato started its Rs 2 fee in 2023, increased it to Rs 5 by April 2024, and has since maintained a stable Rs 10.00 per order as of mid-2025. This consistency from Zomato stands in contrast to Swiggy’s dynamic pricing, especially during peak seasons.
Revenue Impact and Industry Trends
The food delivery sector is currently witnessing a consolidation, with just a few major players dominating the market. This scenario has led to a standardisation of platform fees, which generally range between Rs 9.00 and Rs 15.00 per order across the industry. For Swiggy, with its impressive daily order volume exceeding 2 million, the Rs 14 platform fee translates into substantial additional revenue. Based on internal company projections, this fee generates approximately Rs 2.8 crore daily, which accumulates to around Rs 8.4 crore quarterly, and a staggering Rs 33.6 crore annually. This significant revenue boost is critical for Swiggy as it aims to improve its unit economics and achieve sustainable profitability.
It’s also important to remember that an 18% Goods and Services Tax (GST) applies to these platform fees. For example, Zomato’s Rs 10 fee effectively costs customers Rs 11.80 once GST is included.
To provide a clearer picture of how platform fees compare between the two major players, here’s a summary according to recent market analysis:
| Company | Platform Fee (Rs) | Fee Introduction / Recent Hike | Daily Orders (million) | Estimated Additional Revenue (Rs crore/day) |
|---|---|---|---|---|
| Swiggy | 14 (Rs 14 during festive season 2025) | Introduced Rs 2 in April 2023; gradually increased to Rs 14 in Aug 2025 | ~2 | 2.8 crore |
| Zomato | 10 | Started Rs 2 in 2023; raised to Rs 5 (Apr 2024); current Rs 10 | 2 – 2.5 | Not specified |
What This Means for the Future of Food Delivery
Swiggy’s decision to temporarily raise its platform fee during the festive season, while its competitor Zomato maintains a steady fee, underscores differing strategic approaches to profitability. While such fee hikes might have a marginal impact on order volume, industry experts believe the overall benefit to a company’s unit economics outweighs this risk. The focus has decisively shifted from solely capturing market share to ensuring sustainable financial health. This trend of increasing fees is consistent across the industry, reflecting a mature market where companies are prioritising revenue generation over aggressive customer acquisition at all costs.
According to recent industry reports and leading business publications, key updates regarding Swiggy’s platform fees include:
- August 15, 2025: Swiggy increased platform fees from Rs 12 to Rs 14 during the festive season to improve profitability, expected to yield Rs 2.8 crore additional revenue daily.
- March 2025: Swiggy had temporarily lowered fees to enhance its competitive standing, a strategy that the recent festive hike reverses.
- October 2024: Swiggy raised platform fees from Rs 7 to Rs 10 in select cities, following a similar move by Zomato.
- 2023-2024: The period saw the introduction and gradual increment of platform fees, with Swiggy leading the way in April 2023, setting a precedent for the industry.
In conclusion, the latest Swiggy platform fee increase is a clear indication of the company’s strong push towards profitability, capitalising on the festive demand. It reflects a broader industry-wide trend where food delivery giants are refining their business models to ensure long-term sustainability. Consumers should anticipate these charges as a standard part of their online food ordering experience, as companies continue to balance growth with financial viability.
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