Swiggy shares rally over 4% on platform fee hike, Eternal surges over 2%; check what analysts say on the quick commerce segment.

On Tuesday, Swiggy hiked the platform fee it charges users to ₹17.58 per order, days after rival Zomato increased the charges.

Swiggy had last hiked its platform fee in September last year.

The company has now raised it to ₹17.58 per order inclusive of GST, whereas rival Zomato charges ₹14.90 on a pre-GST basis.

The latest round of increase by Swiggy brings the platform fee charged by both food delivery players effectively at par with each other (to around ₹17.58 per order).

On March 20, Zomato hiked the platform fee it charges users by ₹2.40 to ₹14.90 per order on a pre-GST basis.

Platform fees are fixed, per-order charges in addition to delivery and restaurant fees. To cover operating costs, technology maintenance, and customer support for services.

The latest hike in platform fees is set to make ordering food costlier for millions of users across the country. The increase in platform fees by Zomato and Swiggy comes at a time when crude oil prices are rising due to the West Asia conflict. Higher fuel costs are expected to drive up the cost of delivery operations.

HSBC On quick commerce

Analysts at HSBC have flagged rising competitive pressures in India’s quick commerce segment, noting that Blinkit continues to price products 6–8% higher than peers, which could lead to near-term market share losses.

The financial services firm highlighted that intensifying competition in the space, along with longer-term concerns around the impact of artificial intelligence on business models, may weigh on stock performance across the sector.

Despite downward revisions to earnings estimates, HSBC noted that current valuations appear reasonable.