Foodtech giant Swiggy has hiked its platform fee from INR 2 to INR 3 per order.
Back in April of this year, Swiggy implemented a flat platform fee of INR 2 per order, regardless of the order’s cart value.
The platform fee, applied in addition to the delivery charge, continues to be applicable to all customers, including those enrolled in Swiggy’s loyalty program, Swiggy One. Even Swiggy One members, who receive benefits such as free food and grocery delivery, are not exempt from the platform fee.
The platform fee, applied alongside the delivery fee, continues to be applicable to all customers, including members of Swiggy’s loyalty program, Swiggy One. Even Swiggy One subscribers, who receive benefits such as free food and grocery delivery, are not exempt from the platform fee.
At present, the platform fee is solely associated with Swiggy’s food delivery service and has not been introduced for Instamart orders.
Interestingly, in August, Swiggy’s main rival, Zomato, also increased its platform fee from INR 2 to INR 3 per order. Zomato also extended the platform fee to Zomato Gold users, who were previously exempt from this charge.
This aligns with Swiggy’s pursuit of enhanced profitability, particularly as the company prepares for its initial public offering in 2024.
Earlier this year, Swiggy CEO said its food delivery business achieved profitability as of March 2023. “As of March 2023, Swiggy’s food delivery business has turned profitable (After factoring in ALL corporate costs; excluding employee stock option costs),” claimed Swiggy CEO Co-Founder and CEO Sriharsha Majety.
In the fiscal year 2022, the company reported a consolidated loss of INR 3,629 crore and generated revenue totaling INR 5,704.9 crore. Out of this revenue, INR 3,444.4 crore was attributed to the food delivery segment.
Conversely, Swiggy’s competitor, Zomato, achieved profitability in the first quarter of FY24, recording a consolidated profit after tax (PAT) of INR 2 crore compared to a consolidated net loss of INR 186 crore in the corresponding quarter of the previous fiscal year.