Indian online food ordering and delivery company Swiggy has reportedly raised its platform fee from ₹12 to ₹14 ahead of the festive season.

It was introduced for certain regions on 15 August amid increase in demand of orders; however, it will be reduced once the demand slows down, The Economic Times reported.

A platform fee is a charge that a company like Swiggy, Zomato, or Uber adds to each transaction to cover the cost of maintaining and operating its platform.

The platform fee of Rs14 per food delivery order is  inclusive of Goods and Services Tax (GST), the ET report noted. It is reportedly a 600 per cent increase in just more than two years, NDTV reported. In comparison, Zomato applies a platform fee of ₹10, excluding GST. Swiggy was the first to introduce this fee in April 2023, starting at ₹2, and has gradually increased it to ₹12 (pre-GST) as part of its strategy to strengthen unit-level profitability. Zomato adopted a similar approach, though its most recent fee revision occurred in October 2024.

While these fees represent a small portion of the typical ₹500– ₹600 order value seen on food delivery platforms, they significantly contribute to improving overall profit margins for the companies.

As it ramps up investments in its Instamart vertical, Swiggy has reportedly increased its platform fee amid mounting financial pressure. The move comes during a quarter marked by a sharp rise in losses.

In the April–June period, Swiggy's net loss soared to ₹1,197 crore, double the figure from the same quarter last year. The company also reported a net cash outflow of ₹1,053 crore after accounting for its operating, investing, and financing activities, ET report said. Despite the deepening losses, Swiggy saw a 54% year-on-year growth in operating revenue, which reached ₹4,961 crore.

Rapido's Ownly provides lower commission rates to restaurant partners than Swiggy, Zomato

Amid this, new competition is emerging in the food delivery space. Ride-hailing firm Rapido has launched Ownly, its own food delivery platform, which is currently operational in select areas of Bengaluru, including Koramangala, HSR Layout, and BTM Layout. Ownly aims to challenge established players like Swiggy and Zomato by offering lower commission rates to restaurant partners between 8% and 15%, compared to the 16% to 30% typically charged by the incumbents.

Zomato introduced five price hikes in less than two years, resulting in a 400% surge, NDTV report said. Amid the Swiggy-Zomato duopoly, with commission fees reaching as high as 35%, restaurant owners are left with little choice but to raise their menu prices. As a result, multiple surveys indicate that ordering food online now costs over 50% more than dining at the restaurant, the report added.

Livemint.com has reached out to Swiggy for a statement. The story will be updated once received.