Duopoly Strikes Again: Swiggy Ups Platform Fee To Rs 15 Day After Zomato's Hike
This development follows a similar hike by rival Zomato, which raised the platform fee on food delivery orders to Rs 12 from Rs 10 on Tuesday.
Food delivery major Swiggy on Wednesday increased the platform fee for its food delivery business by 25% to Rs 15 from Rs 12. The hike comes with the onset of festive season demand surge.
Swiggy had previously experimented with a Rs 14 platform fee at select locations last month over increased demand.
This development follows a similar hike by rival Zomato. The Eternal-owned brand on Tuesday raised the platform fee on food delivery orders to Rs 12 from Rs 10, as demand is expected to surge during the festive season.
The platform fee is a flat charge that Swiggy and Zomato customers pay on their food delivery orders. The fee includes goods and services tax.
Swiggy, in its June quarter results, posted a 13% sequential rise in its consolidated revenue, thereby pushing the topline ahead of estimates.
The food delivery major logged a revenue of Rs 4,961 crore in the first quarter, as compared to Rs 4,410 crore in the preceding quarter. The topline has exceeded the estimate of Rs 4,877 crore of the analysts tracked by Bloomberg.
The company's loss in the first quarter came in at Rs 1,197 crore in comparison to a loss of Rs 1,081 crore in the preceding quarter.
Operating loss or earnings before interest, taxes, depreciation, and amortisation narrowed sequentially to Rs 954 crore.
The standout performer in Swiggy's portfolio remained its quick commerce arm, which registered a staggering 114% year-on-year growth and 17% quarter-on-quarter increase, indicating strong traction in its express grocery and essentials delivery model.
Another bright spot for Swiggy was its supply chain and distribution operations, which soared 75% year-on-year and 13% quarter-on-quarter, reflecting the company's continued efforts to expand its backend infrastructure and delivery capabilities.
