Food delivery giant Swiggy is likely to increase the delivery fees on its quick commerce arm Instamart, Money Control reported citing the company’s chief financial officer (CFO) Rahul Bothra.
Also Read: IndiGo sues Mahindra Electric for using ‘6e’ in name of its new car: Report
However, no specific timelines for the change have been mentioned as of now.
At the moment, delivery is free only for Swiggy One (the loyalty programme) users, while others must pay a fee.
Meanwhile, quick commerce market leader Blinkit, which is owned by Zomato, collects a delivery fee on every order and doesn’t have a loyalty programme.
Also Read: Several accepted candidates back out of PM Internship scheme. Here’s why
However, Blinkit made ₹1,156 crore in the second quarter of the financial year 2024-25, while Instamart made just ₹513 crore.
Zepto, the other major quick commerce player, also has a loyalty programme called Zepto Pass, which waives the delivery fee, just like Instamart.
This came when Bothra was addressing queries about how the company plans to improve its take rates, or commissions, from around 15% currently to 20-22% in the future in Instamart, according to the report. The report added that monetisation with ads is another way margins can improve.
Also Read: Mark Zuckerberg meets Donald Trump at Mar-a-Lago, seeks role in tech policy: Report
This also comes after Swiggy started collecting a nominal platform fee of ₹2 per order in April 2023, after which it hiked it fivefold to ₹10 in around 18 months.
After this, Zomato followed suit, initially claiming it only charges the platform fee as high as ₹10 during the festive season rush. But it has been doing it even afterwards as it improves profitability.