Swiggy Raises Platform Fees: An Insight into Food Delivery Costs
Following a 19% increase in platform fees by Zomato last week, rival food delivery service Swiggy has also augmented its platform fee from Rs 14.99 to Rs 17.58, marking a 17% rise. This adjustment comes as both entities aim to enhance their profit margins amid escalating competition. Notably, Swiggy’s platform fee per order encompasses GST, whereas Zomato’s fee is calculated before GST, leading to a comparable fee level of approximately Rs 17.58 per order across both platforms.
The platform fee is a fixed charge that applies to each order, alongside delivery fees and taxes. Earlier in September 2025, Swiggy raised its platform fee from Rs 12 to Rs 15. Concurrently, Zomato increased its fee from Rs 10 to Rs 12, subsequently adjusting it to Rs 12.5. This trend suggests that food is becoming increasingly costly for consumers as Zomato and Swiggy expand their revenue sources and seek to enhance their profit margins.
This move illustrates a wider initiative by food delivery platforms to strike a balance between growth and profitability. They are increasingly implementing fees in addition to restaurant commissions and delivery charges to elevate per order contribution margins. Swiggy initially introduced a platform fee of Rs 2 in April 2023 and has progressively increased this to Rs 17.58, aligning with their objective of refining unit economics.
In Q3 FY26, Bengaluru-based Swiggy reported a notable 54% year-on-year increase in operating revenue, which climbed to Rs 6,148 crore from Rs 3,993 crore in Q3 FY25. However, the company’s losses have also expanded, reaching Rs 1,056 crore during the same period. As of 12:34 PM today, Swiggy’s shares were trading at around Rs 280 each, representing a decline of approximately 33% from its listing price of Rs 420 in November 2024. The company’s current market capitalisation is about Rs 77,372 crore ($8.2 billion).
