Ordering food online is set to get slightly more expensive, with Swiggy increasing its platform fee just days after a similar move by Zomato. The company has raised the fee from Rs 14.99 to Rs 17.58, marking a 17 per cent jump.
New fee structure explained
The updated platform fee is now visible on the app, where Swiggy has informed users that the increase will help the company "operate and maintain the Swiggy platform". With this revision, both Swiggy and Zomato now have nearly identical platform charges, standing at around Rs 17.58, including GST.
Also Read | Zomato raises platform fee to ₹15; analysts see margin gains, no demand hit
The move follows Zomato's recent hike, which saw its platform fee rise by about 19 per cent. According to NDTV, that increase translated to an additional Rs 2 per order for users.
Why the hike matters
Swiggy's last fee revision came in September, when the platform fee was increased by 20 per cent to Rs 14.99. NDTV quoted sources saying that the latest hike is aimed at improving operating leverage and maintaining parity with Zomato.
The company is also navigating broader challenges, including inflationary pressures and the impact of upcoming state elections, which are weighing on margins. Despite these headwinds, the management has indicated that it remains focused on meeting its guidance.
Swiggy's shares were trading marginally higher on Tuesday, gaining about half a per cent during the session. However, the stock has declined nearly 30 per cent so far this year.
Analyst sentiment remains largely positive. Out of 28 analysts tracking Swiggy, 23 have a 'buy' rating, while three suggest 'hold' and two recommend 'sell', according to Bloomberg data. The average 12-month consensus price target indicates a potential upside of 59 per cent.
Zomato also shows similar optimism among analysts, with 30 out of 33 tracking the company maintaining a 'buy' rating. Its consensus price target also points to an upside of around 59 per cent.
Also Read | Big drop in bullion: Gold declines, silver falls nearly twice as much
What this means for users
For customers, the change means a marginal increase in the overall cost of ordering food online. With both major platforms aligning their fees, users may see fewer price differences between the two services going forward.
