Swiggy has once again raised its platform fee, bumping it from ₹12 to ₹14 per order in high-demand regions effective August 15, 2025. The timing aligns with the festive season, a period traditionally known for peak order volumes. According to Swiggy, the fee hike is driven by increasing demand and is meant to help manage operational costs during high traffic.
Timeline: Swiggy’s Platform Fee Escalation
The platform fee has shot up by 700% since introduction:
| Date | Fee (₹/order) | Reason/Context |
|---|---|---|
| Apr 2023 | ₹2 | Fee launched |
| Oct 2023 | ₹3 | 50% hike |
| Jul 2024 | ₹6 | Up 20% from ₹5 during high orders |
| Oct 2024 | ₹10 | Festive surge; near-permanent |
| Aug 2025 | ₹14 | Latest: Festive season, high volumes |
What’s Driving the Hike?
One key driver is Swiggy’s mounting losses. In Q1 FY26, Swiggy reported losses of ₹1,197 crore—almost double from ₹611 crore a year prior. The fee hike is seen as a response to these financial pressures, as direct revenue from platform fees becomes crucial for balancing operating costs. The platform fee stands separately from delivery charges, restaurant costs, and GST, and applies even to Swiggy One members.
Swiggy’s official rationale aligns with what industry analysts and spokespeople have cited before:
- To improve unit economics and boost revenue:
- To balance increased delivery and operational costs as commissions from restaurants are capped
- To follow standard monetization models like other industry players
The decision to hike fees, according to various reports, comes down to three main reasons, all closely linked to Swiggy’s financial and operational challenges:
1. Rising Operational Costs:
Food delivery companies face mounting expenses from logistics, delivery partner payouts, technology upgrades, and customer support. With the number of orders escalating during peak festive times, costs go up quickly. According to The Economic Times, the platform fee hike helps Swiggy cover these increasing operational costs, especially when surges in volume lead to higher delivery and support expenses.
2. Widening Losses:
Swiggy posted losses of ₹1,197 crore for the June quarter (Q1 FY26), nearly double compared to ₹611 crore a year before, as reported by Startupro. This financial strain makes additional revenue from platform fees critical for Swiggy to balance its books—even marginal increases can add crores to the monthly total, especially with 2 million daily orders.
3. Limits on Restaurant Commissions:
Regulatory caps and competitive market pressure have limited the commissions that Swiggy can charge to restaurants. As a result, platform fees are now a more controllable and reliable revenue source. According to The Indian Express, these fees help food delivery platforms offset the shortfall from capped commissions.
Zomato Has Also Implemented Several Hikes
- Started at ₹2 per order in August 2023
- Rose gradually, hitting ₹6 by July 2024
- Briefly charged ₹10 per order during Diwali/festive peak in Oct 2024
Both platforms justify these increases as necessary to maintain service quality, cover higher operating expenses during demand surges, and improve margins. Zomato even directly addresses users, stating, “This fee helps us pay our bills and keep Zomato running.”
Platform Fee: Impact & Revenue Upside
With Swiggy currently processing approximately 2 million food delivery orders daily, the revenue impact from just small fee increases is significant:
- At ₹14 per order, platform fees alone could generate ₹28 crore daily—potentially adding up to ₹840 crore monthly during peak demand.
With both Swiggy and Zomato processing similar order volumes, fee hikes have become a competitive, industry-standard practice. The additional income provides a buffer against rising expenses and the squeeze of tighter commission rules.
Looking Ahead: Expected Revenue and Market Reactions
Industry analysts expect Swiggy’s fee hikes to help narrow losses, though backlash from customers is likely—especially since repeated increases make food delivery less affordable and apply across all user groups. If current order volumes hold steady, Swiggy could see a notable boost in platform fee revenues, partially offsetting heavy quarterly losses.
