New Delhi: Swiggy Ltd. and Eternal Ltd.’s Zomato have once again raised platform fees in lockstep, seeking to cash in on the surge in demand expected during the festive season.
Bengaluru-based Swiggy has hiked its platform fee for the third time in as many weeks to Rs 15 per order (inclusive of GST), while Gurugram-based Zomato has increased its levy by 20 percent to Rs 12 per order (excluding GST). With daily order volumes of nearly 20 lakh for Swiggy and 23–25 lakh for Zomato, each platform now earns roughly Rs 3 crore every day purely from platform fees.
Despite the boost, both companies continue to grapple with cost pressures, particularly from their quick-commerce verticals—Swiggy Instamart and Zomato-owned Blinkit—which remain heavy on cash burn.
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Financials reflect the strain. In the quarter ended June 30, Swiggy’s losses widened to Rs 1,197 crore, even as operating revenue jumped 54 percent to Rs 4,961 crore. Meanwhile, Zomato’s profit slumped 90 percent year-on-year to Rs 25 crore, despite a 70 percent rise in revenue to Rs 7,167 crore. The numbers underscore the companies’ growing reliance on ancillary income streams like platform fees.
What are platform fees?
These charges appear as a separate line item on customer bills—over and above the cost of food, delivery, restaurant charges, surge pricing, packaging, and GST. Platform fees are designed to offset operational and logistics expenses, strengthen EBITDA margins, and cushion losses from cost-intensive businesses like quick commerce.
With festive demand expected to spike, the timing of these hikes ensures a steady stream of additional revenue. Investors seemed to welcome the move—Swiggy shares gained 1.19 percent and Eternal shares 1.16 percent on Wednesday, even as the benchmark Sensex closed 0.51 percent higher.
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