Online food delivery platform Swiggy has increased its platform fee from Rs 14.99 to Rs 17.58 per order, following a similar move by its competitor Zomato, which recently raised its fee to Rs 14.90. The decision has sparked a wave of reactions on social media, with many users expressing concerns about the increasing cost of ordering food online.
Market context: Swiggy and Zomato dominate
Swiggy and Zomato remain the two leading food delivery aggregators in India, despite the emergence of smaller players like Ownly. Both platforms have historically offered heavy discounts to attract and retain customers, but the recent hikes indicate a strategic shift toward profitability after years of subsidised pricing.
‘This was inevitable. Discounts are going away and unit economics are finally catching up,’ wrote one X user. Another added, ‘Subsidy phase is over. Profitability phase has begun.’
Industry experts say that the platforms are moving away from the ‘growth-at-all-cost’ phase and are now focusing on sustainable business models, even if it means higher charges for users.
Social media reacts to the fee hike
News of Swiggy’s platform fee increase was met with mixed reactions online. Many users claimed they might reduce or stop using online delivery services altogether.
‘This is reaching a stage where people will stop ordering because total charges are so high,’ commented Nitin Jauhari. Another user advised, ‘If you are in your 20s, I feel you should not use these apps if you can. Go out there, make plans, hang out with friends.’
Palwinder Singh summed up the sentiment for some users, saying: ‘It’s the ultimate Life Hack for tech giants. They aren’t selling food, they’re selling an addiction to convenience and they know exactly how much we’re willing to pay to avoid walking to the local dhaba.’
Will the fee hike change user behaviour?
The price increase, though just 2-3 rupees per order, could affect long-term user behaviour, as many consumers rely on delivery apps primarily for convenience and discounts. Analysts suggest that if platform fees continue to rise, users may start exploring alternatives such as cooking at home or dining out, especially for casual meals.
‘With every price increase, users are given more reasons to consider other options,’ said one X user. ‘People started using Swiggy and Zomato for convenience and discounts, but if fees keep increasing like this, users will eventually rethink whether it’s worth it.’
