Swiggy customers may soon face a surprise as the food tech and grocery delivery platform plans to increase delivery charges for its Instamart service.
Many users rely on Swiggy Instamart for quick commerce, ordering groceries, food items, and other household essentials.
The company’s Chief Financial Officer (CFO), Rahul Bothra, shared this update on December 3.
Why did Swiggy decide to increase delivery fees?
According to a Moneycontrol report, Swiggy has decided to raise delivery charges to boost the profits of its Instamart unit.
Rahul Bothra explained that the company’s overall fee structure includes a subsidy on Swiggy’s subscription program and the fees charged to users.
Delivery fees are expected to rise over time, which is why Swiggy plans to increase Instamart’s delivery charges.
How much can rates increase
Swiggy’s CFO has shared that the company plans to increase its Instamart commission from the current 15 percent to 20-22 percent in the future.
Additionally, Swiggy intends to boost earnings through advertisements on the platform, which will help improve the company’s margin.
However, Rahul Bothra did not specify when these new charges would be implemented.
Swiggy has announced its quarterly results
In Swiggy’s FY 2025 second-quarter results, Instamart’s profit rose to Rs 513 crore, up from Rs 240 crore in the same period last year.
This makes it one of the most important divisions for Swiggy. In comparison, Blinkit reported a profit of Rs 1156 crore, highlighting that Swiggy still needs to strengthen its position.
Swiggy has consistently raised the platform fee for food delivery
In April 2023, Swiggy charged Rs 2 per order for food delivery. However, within 18 months, this fee has risen to Rs 10 per order, making it five times higher.
The company had increased the food delivery fee a few months ago, and it remains high.
