Food delivery major Swiggy has increased its platform fee by ₹2—from ₹12 to ₹14 per order—in select high-demand regions starting mid-August 2025. The hike, positioned as a temporary measure, is aimed at improving unit economics as the company battles mounting losses despite strong revenue growth.

The adjustment comes at a time when certain regions are witnessing a surge in orders. By levying a slightly higher charge during these peak periods, Swiggy hopes to offset rising operational costs and strengthen margins, while expecting minimal impact on customer demand. The company has indicated that the fee will return to normal once order volumes stabilize.

Swiggy’s move follows the release of its Q1 FY26 results, which showed a net loss of ₹1,197 crore—almost double the ₹611 crore reported in the same quarter last year. The widening losses underline the challenges of scaling, especially with heavy investments in Instamart, its quick-commerce arm.

However, revenue trends paint a more positive picture. Revenue from operations jumped 54% YoY to ₹4,961 crore, reflecting strong consumer appetite for food delivery and grocery services. The growth underscores Swiggy’s ability to attract and retain customers, though profitability continues to lag due to high logistics and infrastructure costs.

Industry analysts see the fee hike as a calibrated move to reduce cash burn without undermining service quality. For investors, the strategy appears reassuring: Swiggy’s shares rose 3% shortly after the announcement, signaling market confidence in its ability to balance growth with financial discipline.

In essence, Swiggy’s temporary fee increase reflects a pragmatic approach to stabilizing finances during expansion. The company’s long-term sustainability, however, will hinge on improving operational efficiency and achieving profitability while sustaining leadership in India’s competitive delivery market.