“Swiggy Set to Hike Instamart Delivery Fees: Report”
Swiggy, the popular food delivery platform, is reportedly set to increase the delivery charges on its quick-commerce service, Instamart, according to a report by Money Control citing the company’s Chief Financial Officer (CFO) Rahul Bothra. However, specific timelines for the delivery fee hike have not yet been disclosed.
Swiggy, the popular food delivery platform, is reportedly set to increase the delivery charges on its quick-commerce service, Instamart, according to a report by Money Control citing the company’s Chief Financial Officer (CFO) Rahul Bothra. However, specific timelines for the delivery fee hike have not yet been disclosed.
Currently, delivery fees are waived for Swiggy One users, the company’s loyalty program, while other customers are required to pay a delivery fee. The potential fee hike is part of Swiggy’s ongoing efforts to enhance profitability within its Instamart vertical.
Swiggy’s move comes as competition in the quick-commerce sector intensifies, with Blinkit—owned by Zomato—leading the market. Blinkit, unlike Swiggy, charges a delivery fee on every order and operates without a loyalty program. Despite this, Blinkit posted a revenue of ₹1,156 crore in the second quarter of FY 2024-25, far exceeding Instamart’s ₹513 crore for the same period.
Zepto, another key player in the quick-commerce space, also offers a loyalty program, Zepto Pass, which waives delivery charges. This model is similar to Swiggy’s current offering for Swiggy One members.
Rahul Bothra, while addressing queries about Swiggy’s future plans, mentioned that the company intends to increase its take rates or commissions from the current 15% to a target of 20-22%. The company is also considering monetizing its platform through advertising to improve margins, according to the report. This follows Swiggy’s recent decision to implement a nominal platform fee in April 2023, which was initially set at ₹2 per order and later raised to ₹10 within 18 months.
Zomato has also adopted a similar approach, charging a platform fee of ₹10 during the festive season and continuing to do so even post-festivals in a bid to improve profitability.
The changes reflect the evolving business strategies of these companies as they seek to balance profitability with customer retention in an increasingly competitive quick-commerce market.
Sources By Agencies
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