Amid escalating competition, Swiggy has increased its platform fee by 17% to Rs 17.58, following Zomato’s similar move last week. This adjustment aims to enhance margins in the fiercely competitive food delivery sector.
Swiggy’s platform fee, now inclusive of GST, mirrors Zomato’s fee when compared on a similar basis. This fixed charge, added to delivery fees and taxes, has steadily risen over time, reflecting the companies’ strategy to boost per order contribution margins beyond restaurant commissions.
As food delivery costs rise, customers are experiencing the impact of Swiggy and Zomato’s revenue-focused approach. Swiggy’s continuous fee adjustments since its Rs 2 introduction in April 2023 highlight a shift towards improving unit economics.
In Q3 FY26, Swiggy witnessed a substantial 54% year-on-year growth in operating revenue, reaching Rs 6,148 crore. However, this growth was accompanied by widened losses amounting to Rs 1,056 crore during the same quarter.
Despite Swiggy’s shares trading lower than their listing price, the company’s market capitalization remains significant at approximately Rs 77,372 crore ($8.2 billion).
Source: Entrackr : Latest Posts