3 days ago
Swiggy shares in focus after company hikes platform fees to Rs 14
Swiggy shares will be in focus on Monday, August 18, after the food delivery major raised its platform fee amid a surge in orders. The company has increased the fee for its food delivery business to Rs 14 from Rs 12 in select geographies experiencing higher order volumes.
ADVERTISEMENT The hike comes as Swiggy grapples with widening losses and intensifying competition in the food delivery market.
For the April–June quarter, Swiggy's net loss doubled year-on-year to Rs 1,197 crore. The company also reported a net cash outflow of Rs 1,053 crore after accounting for operating, investing, and financing activities.
Despite the losses, operating revenue jumped 54% YoY to Rs 4,961 crore, driven by strong order volumes and increased investments in its quick-commerce arm, platform fee increase is expected to help offset costs and support margins, though such charges account for only a small portion of the average Rs 500–600 order value on aggregator platforms. Swiggy did not respond to queries on the latest hike.
Competition in the sector is set to intensify with the entry of Ownly, a new service launched by ride-hailing platform Rapido. Currently operating in parts of Bengaluru, Ownly is positioning itself as a cost-efficient alternative by charging restaurant commissions of 8–15%, compared with the 16–30% levied by Swiggy and Zomato.
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Swiggy shares have declined 26.52% year-to-date. However, they gained 17.02% over the past six months, 29.61% in the last three months, and 1.28% in the past month.
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