Swiggy to increase Instamart delivery charges? Here's what we know

At the moment, delivery is free only for Swiggy One (the loyalty programme) users while others have to pay a fee

Published on: Dec 4, 2024, 15:08:30 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Food delivery giant Swiggy is likely to increase the delivery fees on its quick commerce arm Instamart, Money Control repor ted citing the company's chief financial officer (CFO) Rahul Bothra.

The Swiggy Limited's logo is seen at a press conference during which its Initial Public Offering (IPO) was announced in Mumbai, India, October 30, 2024 (Francis Mascarenhas/Reuters)

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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.

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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.

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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.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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