Food Delivery, Q-Comm Orders Are Quietly Getting Pricier, And Its Not Likely To Stop Anytime Soon

Across the food delivery and quick commerce industry, platform or handling fees are quietly climbing. Most players are now charging Rs 9–15 per order which makes up 1–3% of the average order value.

These charges, which vary by user and location, have shown a steady upward trend since late 2024. BigBasket and Instamart charge at the higher end in cities like Mumbai and Bengaluru, analysts at Axis Capital said in a note from June 17.

“We see room for further increases in platform fees, which could pose an upside risk to our estimates,” Axis Capital said.

On the food delivery front, Zomato and Swiggy introduced platform fees in 2023 at Rs 2 per order, increasing it to Rs 3 in October the same year. Zomato further increased it to Rs 4 in January 2024, Rs 5 in April, Rs 6 in July, and Rs 10 in October. Swiggy's platform fees now stands at Rs 11.80 per order.

"The platforms seem to be finding it feasible to take steady hikes, as this does not appear to visibly impact order frequency," Axis Capital said.

While analysts believe there to be further increases in platform fees down the line, they added that quick commerce firms are continuously trying out different types of charges.

"It's not a plan of throwing things at the wall and seeing what sticks. Because right now, everything is sticking," Aakash Agarwal, head of digital and new age business at Anand Rathi Investment Banking, said.

India's quick commerce market has matured to a level where there are only three or four big players, and all players will be comfortable charging similar charges, Agarwal explained.

"Now there's handling fees, convenience fees, and small order charges that are cropping up across platforms," he added.

"For example, a Rs 5 addition on top of a delivery or handling fees will end up going a long way when you're doing 40 lakh deliveries a day," he said.

Companies like Zomato, Swiggy and Zepto have burnt cash in acquiring customers and scaling businesses, and now they are countering that with higher charges on things like platform fees, another analyst said.

They said that as platforms are in the process of doing away with dark patterns, consistent hikes in actual platform fees are likely to become the new norm.

The analyst added that for the next few quarters, platform fees across industry players is likely to keep rising as companies strive to improve margins.