Food and grocery delivery platform Swiggy is considering increasing the delivery fees for its quick commerce arm, Instamart, reported moneycontrol.com.
The move aims to improve profitability, according to Chief Financial Officer (CFO) Rahul Bothra, who discussed the plan with analysts after the company announced its Q2 FY25 results on December 3.
Read More: Petrol, Diesel Fresh Prices Announced: Check Rates In Your City On December 4
Currently, Swiggy subsidises delivery fees through its loyalty program, Swiggy One, and discounts for new users. While delivery is free for Swiggy One members, other customers pay a dynamic fee. Bothra indicated that the company plans to raise these charges gradually but did not specify a timeline.
The competitive quick commerce sector includes players like Zomato-owned Blinkit and Zepto. Unlike Swiggy, Blinkit does not offer free delivery for any orders, while Zepto waives fees for loyalty program members.
Read More: Cement Prices At 5-Year Low Though No Significant Price Hike Likely In Near Term: Report
Bothra also highlighted additional measures to boost margins, including increasing platform fees for food delivery orders and monetising Instamart through advertisements.
Swiggy has already raised its platform fee fivefold, from Rs 2 to Rs 10 per order, in the past 18 months. The company intends to improve its take rates (commissions) for Instamart from the current 15% to 20-22%.
Instamart recorded adjusted revenue of Rs 513 crore in Q2 FY25, more than double the Rs 240 crore earned in the same period last year. However, it still trails Blinkit, which reported revenue of Rs 1,156 crore during the quarter.
Read More: Gold Prices Rise In India: Check 22 Carat Rate In Your City On December 4
At the company level, Swiggy’s revenue rose 30% year-on-year to Rs 3,601.5 crore for Q2 FY25, while its losses narrowed to Rs 625.5 crore from Rs 657 crore a year earlier.
As competition intensifies, Swiggy’s strategic fee adjustments aim to drive higher average order values and faster profitability.
Swiggy shares jumped as much as 7% in early trade as brokerages remain optimistic about the company’s future growth.
