Foodtech giant Swiggy has hiked the platform fee from INR 2 to INR 3 per order.
In April this year, Swiggy introduced a platform fee of INR 2 per order, irrespective of the cart value.
The platform fee, which is charged in addition to the delivery fee, remains in effect for all customers, including those who are part of Swiggy’s loyalty program, Swiggy One. Swiggy One subscribers, who enjoy perks like complimentary food and grocery delivery, are not exempt from the platform fee.
Currently, the platform fee is only applicable to Swiggy’s food delivery service. The company has not implemented it for Instamart orders.
Interestingly, in August, Swiggy archrival Zomato also hiked its platform to INR 3 per order from an initial INR 2. Zomato also started charging the platform fee from Zomato Gold users, who were earlier exempted from this fee.
This aligns with Swiggy’s quest for profitability, especially as the company gears up for its stock market debut in 2024.
Earlier this year, Swiggy CEO said its food delivery business achieved profitability as of March 2023. “As of March 2023, Swiggy’s food delivery business has turned profitable (After factoring in ALL corporate costs; excluding employee stock option costs),” claimed Swiggy CEO cofounder and CEO Sriharsha Majety.
The company posted a consolidated loss of INR 3,629 Cr in FY22 and revenue of INR 5,704.9 Cr. Of this, INR 3,444.4 Cr came from the food delivery business.
On the other hand, Swiggy’s rival Zomato turned profitable in the first quarter of FY24 with a consolidated profit after tax (PAT) of INR 2 Cr against a consolidated net loss of INR 186 Cr in the corresponding quarter of the previous fiscal.
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