Swiggy increases platform fee from Rs 12 to Rs 14 per order during the festive season, potentially adding significant daily revenue amid rising transactions.

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Swiggy Raises Platform Fee to Rs 14 per Order Amid Festive Surge

Swiggy, one of India’s leading food delivery platforms, has announced an increase in its platform charge from Rs 12 to Rs 14 per order. This Rs 2 hike comes as the company experiences higher transaction volumes during the ongoing festive season, aiming to capitalize on heightened demand. While the fee increment might appear minor to customers, the scale of Swiggy’s daily order volume makes this a significant revenue driver for the company.

Platform Fee Increase: Details and Impact

The platform fee was initially introduced in 2023 as part of Swiggy’s strategy to improve profitability. Since then, the company has gradually raised this fee without affecting overall order volumes. The latest increase—from Rs 12 to Rs 14 per order—coincides with the festive period, during which customer orders tend to spike.

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With Swiggy processing over 2 million orders daily, this Rs 2 increase could translate into an additional daily revenue of approximately Rs 2.8 crore. Annually, this amounts to around Rs 33.6 crore, depending on sustained order volumes.

Why Has Swiggy Increased Its Platform Fee?

• Seasonal Surge in Transactions: The festive season drives more users to place orders, increasing transaction volumes substantially.
• Profitability Push: The platform fee hike is part of the company’s broader effort to enhance revenue streams amid continued investment in expanding its service offering.
• Operational Costs: Higher order volumes likely increase operational expenses, making a fee hike a viable strategy to offset these costs.

Swiggy’s Financial Performance Amid Fee Hikes

Despite the platform fee increases, Swiggy’s order volumes have remained robust, indicating customer retention even with a higher cost per order. Yet, the company recently reported a rise in losses for the April-June quarter, despite impressive revenue growth.

In Q1 FY26, Swiggy posted an operating revenue of Rs 4,961 crore, marking a 54% year-on-year increase. However, its consolidated net loss widened to Rs 1,197 crore compared to Rs 1,081 crore in the previous quarter and Rs 611 crore in the same period last year.

Instamart: Fueling Revenue Growth

Swiggy’s grocery delivery arm, Instamart, has been a major contributor to the company’s revenue gains. In the recent quarter, Instamart doubled its operating revenue to Rs 806 crore, growing 17% sequentially from Rs 689 crore. This growth was supported by the expanded network of dark stores added in the Q4 FY25, enhancing the quick commerce platform’s reach.

What This Means for Customers and Swiggy’s Market Strategy

The incremental platform fee increase, although modest on a per-order basis, reflects Swiggy’s focus on balancing growth with profitability during peak demand periods. Customers may notice a slight cost rise in delivery fees, but current data suggests that the platform fee hikes have not negatively impacted the frequency of orders.

For Swiggy, this strategy supports scaling operations sustainably amid competitive pressures in the Indian food delivery market. By leveraging increased transaction volumes in festive seasons, the company can better cover costs and invest in expanding its service capabilities.

Summary

• Swiggy has raised its platform fee from Rs 12 to Rs 14 per order amid the festive season surge.
• The small increase could add approximately Rs 2.8 crore to daily revenue, totaling nearly Rs 33.6 crore annually.
• Swiggy’s operating revenue grew 54% year on year to Rs 4,961 crore for April-June, but net losses also widened.
• Instamart’s grocery delivery segment doubled its revenue to Rs 806 crore, driving much of the company’s growth.

This fee hike is a calculated step by Swiggy to offset rising demand and operational costs while positioning itself for sustainable growth in India’s fast-evolving food delivery market.

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