Key Points
- Platform fee increased by Rs2 to Rs14 per order; effective across most food orders.
- Swiggy says the move strengthens unit economics amid rising festive-season demand.
- Platform fee has steadily risen since its April 2023 rollout (from Rs2 to now Rs14).
- Daily orders estimated at 20 lakh+; Rs2 hike could add Rs2.8 crore/day in revenue.
- Q1 FY26: Company reports strong profitability and higher operating revenue, aided by Instamart.
New Delhi: Odring on Swiggy will get slightly costlier as the company has raised its platform fee from Rs12 to Rs14 per order, a 17% increase. The fee is typically applied on most food delivery orders and is separate from delivery charges, taxes, and restaurant fees. Swiggy has framed the hike as a step to improve per-order profitability and support operations as order volumes climb during the festive period.
How Swiggy’s Platform Fee Evolved
- April 2023: Platform fee introduced to improve unit economics, starting at Rs2.
- Subsequent months: Incremental hikes without notable impact on order volumes.
- New Year (last year): Increased to Rs12.
- Now: Raised to Rs14 per order.
This gradual increase indicates the fee has become a core lever in Swiggy’s profitability strategy while maintaining growth momentum.
Why This Matters For Customers
For most users, an extra Rs2 per order is marginal, but frequent orderers will see the difference add up over time. The total checkout cost still depends on multiple components restaurant price, taxes, delivery fee/surge, and tips so the net impact varies by order value, location, and time.
What It Means For Swiggy’s Financials
- Order volumes: Industry estimates peg Swiggy’s daily orders at 20 lakh+.
- Incremental revenue: A Rs2 hike on that base implies roughly Rs2.8 crore additional revenue per day.
- Periodic impact: About Rs84 crore per 30-day month (or Rs8.4 crore per 10-day period), and approximately Rs336 crore annually if volumes and fee levels hold steady.
These back-of-the-envelope calculations illustrate why small fee changes can materially strengthen unit economics at scale.
Business Context: Profits And Revenue Momentum
Swiggy reported a strong start to FY26:
- Profit: Around Rs1,197 crore profit in Q1 FY26, roughly double year-on-year.
- Revenue: Operating revenue rose to about Rs4,961 crore in the same quarter.
- Growth drivers: The core food delivery business and rapid-commerce arm Instamart both contributed to performance, with Instamart supporting frequency and basket growth.
What To Watch Next
- Differential pricing: Whether Swiggy experiments with variable platform fees by city, cart size, or time of day.
- Membership plays: Potential offsets for subscribers (e.g., loyalty or paid membership benefits) to cushion frequent users.
- Competitive response: If rivals match platform fee hikes or push promotions to capture value-conscious customers.
- Regulatory lens: Any emerging consumer-protection scrutiny on fee transparency in food delivery.
