Source CNBC TV18
In a move that signals a shift toward improving margins, Swiggy has increased its platform fee by nearly 17%, coming just days after a similar step by Zomato. The back-to-back hikes by India’s leading food delivery platforms highlight a broader industry push to strengthen profitability amid rising operational costs.
According to industry sources, Swiggy has raised its per-order platform charge across several cities, following Zomato’s recent revision. While the fee increase may appear marginal on individual orders, it is expected to significantly boost revenue when applied across millions of daily transactions.
The development had an immediate impact on the stock market, with shares of major platform-based companies witnessing a surge. Investors reacted positively, interpreting the price adjustments as a sign of improved financial discipline and a clearer path to sustainable profits in a highly competitive sector.
Analysts believe that the synchronized fee hikes suggest a level of pricing power returning to the duopoly. Over the past few years, both companies have focused heavily on customer acquisition and discounts, often at the expense of margins. The current move indicates a recalibration toward balancing growth with profitability.
However, the decision may also raise concerns among users already dealing with rising food prices and delivery charges. Whether customers absorb the increase or reduce order frequency will be closely watched in the coming weeks.
For now, the market appears optimistic, with platform companies gaining momentum as investors bet on a more sustainable business model for India’s rapidly evolving food delivery ecosystem.
