India’s food delivery market is seeing a notable shift as Swiggy has raised its platform fee to ₹17.58 per order. This hike represents a 17% increase from Swiggy’s previous fee of ₹14.99 and comes just days after Zomato’s own 19% increase. With both major players now charging roughly the same platform fee, customers across the country are experiencing higher costs per order. The platform fee is an additional charge separate from delivery fees, restaurant prices, surge fees, or GST. While small individually, when applied across millions of daily orders, these fees contribute substantially to the companies’ revenue streams.
This latest increase marks Swiggy’s fourth adjustment in just seven months, reflecting a pattern of frequent recalibration of pricing strategies. Over the past year, both Zomato and Swiggy have steadily raised platform fees. Zomato’s base fee moved from ₹12 to ₹14.9, while Swiggy’s fee shifted from ₹14.99 to ₹17.58. These consistent hikes indicate the companies’ need to maintain margins amid competitive pressures and growing operational costs. With millions of orders processed every day, approximately 4.3–4.5 million combined, even a small per-order fee generates significant recurring revenue. Industry estimates suggest platform fees contribute around ₹3,500–4,000 crore annually to the overall ecosystem.
The platform fee acts as a direct revenue lever for these companies. As competition has intensified and restaurant commissions face resistance, food delivery apps are increasingly relying on charges to customers to protect profitability. Higher costs from delivery operations, driver incentives, and other operational overheads make direct charges a more reliable income source. This approach allows both Swiggy and Zomato to sustain growth while continuing to invest in user experience, technology, and logistics infrastructure.
Although these fee hikes are raising the cost for consumers, they also signal a maturing business model where food delivery apps are moving beyond aggressive growth strategies driven solely by commissions from restaurants. By standardizing platform fees, both companies reduce price-based switching between apps, creating a more predictable revenue base. Furthermore, the matching fee structure may simplify user experience, as customers now face similar additional costs regardless of the platform.
The broader market implication is clear: platform fees are becoming an important pillar for India’s food delivery sector. With millions of orders per day and growing adoption of online food delivery services, incremental fee hikes can translate into hundreds of crores in revenue annually. The recent hikes underscore how app-based services are balancing affordability for users with the financial sustainability of their operations.
In short, the simultaneous increase by Swiggy and Zomato reflects a strategic move to strengthen margins, manage operational costs, and ensure sustainable revenue growth in a highly competitive market. As the food delivery sector continues to expand in India, platform fees are likely to remain a key lever for profitability.