Swiggy raises platform fee to ₹17.58 per order, matches Zomato

Food delivery platform Swiggy has raised its platform fee to ₹17.58 per order, including GST, from ₹14.99 earlier, marking an increase of about 17%, as competitive pressures and rising costs weigh on the sector.

The move comes close on the heels of rival Zomato increasing its effective platform fee to the same level.

Zomato currently charges a base platform fee of ₹14.90 per order, with an additional ₹2.68 as GST, taking the total payable amount to ₹17.58.

The latest hike is expected to make online food ordering costlier for millions of users across the country.

The increase in platform fees comes at a time when restaurants and cloud kitchens are grappling with operational challenges, including shortages of commercial LPG due to disruptions in the Strait of Hormuz.

Several eateries have curtailed menu offerings to optimise fuel usage amid supply constraints.

At the same time, elevated crude oil prices linked to the West Asia conflict are likely to push up delivery costs, adding further pressure on food delivery platforms.

Zomato had last week raised its platform fee by ₹2.40 to ₹14.90 per order (pre-GST) from ₹12.50 earlier, as per its app.

What began as a nominal ₹2 fee in 2023 has steadily evolved into a key revenue lever for food delivery companies. While the platform fee remains a relatively small component of the total order value, its impact at scale is substantial.

Industry estimates suggest that Swiggy and Zomato together process around 4.3–4.5 million orders daily, meaning even marginal increases in fees translate into significant incremental revenue.

Meanwhile, magicpin, the third-largest player in the segment, has decided against raising its platform fee for now. The company currently charges ₹14.20 per order.

“At a time when the food delivery ecosystem is navigating a tough phase with rising costs, we have consciously decided not to increase our platform fee to support our restaurant partners and keep food delivery accessible for customers,” magicpin CEO and founder Anshoo Sharma said.