Swiggy Hikes Delivery Fees to Counter Surging Losses and Competition

As of August 18, 2025, Swiggy, the prominent food delivery platform, has taken steps to address its growing financial challenges. The company has increased its platform fee from ₹12 to ₹14 in select geographies experiencing higher order volumes. This strategic move is an attempt to counter the widening losses Swiggy has been grappling with.

In the April-June quarter of 2025, Swiggy's net loss more than doubled year-on-year to a staggering ₹1,197 crore. Despite this, the company's operating revenue surged by 54% to ₹4,961 crore, driven by strong order volumes and investments in its quick-commerce arm, Instamart.

The platform fee hike is expected to help offset costs and support Swiggy's margins, though such charges account for only a small portion of the average ₹500-600 order value on aggregator platforms. The company has not responded to queries regarding the latest fee increase.

Swiggy's move comes as it faces intensifying competition in the food delivery market. The recent launch of Ownly, a new service by ride-hailing platform Rapido, poses a challenge. Ownly is positioning itself as a cost-efficient alternative by charging restaurant commissions of 8-15%, compared to the 16-30% levied by Swiggy and Zomato.

Swiggy's shares have shown a mixed performance, declining 26.52% year-to-date but gaining 17.02% over the past six months, 29.61% in the last three months, and 1.28% in the past month.