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Swiggy Reverses Free Delivery, Charges Return
9 Feb
Summary
- Swiggy reinstates ₹7-10 handling fees on all Instamart orders.
- Surge fee waivers now exclusive to Swiggy One subscribers only.
- Instamart targets breakeven by end of Q1FY27.
Swiggy has begun reversing its "No Fee" campaign on Instamart, reinstating handling charges of ₹7-10 on all orders. This move comes after management noted "limited adoption and retention" from the experiment. Surge fee waivers are now restricted to Swiggy One subscribers, a departure from the previous policy available to all users above a ₹299 threshold.
The quick commerce business is targeting contribution margin breakeven by the end of Q1FY27. In Q3 FY26, Instamart reported a contribution margin of negative 2.1%, necessitating significant improvement over the next two quarters. The company is testing which fees can be reinstated without causing significant customer churn.
This strategic adjustment suggests Swiggy is prioritizing its subscription program, Swiggy One, as a key tool for retaining price-sensitive users. Meanwhile, competitor Blinkit has also begun experimenting with lower delivery fees in select areas to maintain its market share, indicating a shift in the quick commerce landscape.
