New Delhi: Customers of food tech and grocery delivery platform Swiggy are going to get a shock. A large number of customers fulfill their needs related to quick commerce through Swiggy Instamart such as ordering groceries, food items, or other household items. Now Swiggy is focusing on increasing the delivery charges of its Instamart platform. On December 3, the company's Chief Financial Officer (CFO) Rahul Bothra gave this information.

Why did youmakee this decision?

According to media reports, Swiggy has taken this decision to increase the profit of its Instamart unit. Rahul Bothra said that if we look at the company's overall fee construction model, a certain amount is levied as a subsidy on Swiggy's subscription program and the fees charged from the users.
Delivery charges are expected to increase over time and hence Swiggy Instamart is planning to increase its delivery charges.

How much can rates increase

Swiggy's CFO has informed that the company is going to increase its Instamart rates or commission from the current 15% to 20-22% in the future. Along with this, it is also planning to increase earnings through advertisements on the platform, which will prove helpful in increasing the company's margin. Rahul Bothra did not say when these changed charges would be applicable. In Swiggy's second quarter results for FY 2025, Instamart's profit has increased to Rs 513 crore, which was Rs 240 crore in the same period of the previous financial year.

Food delivery platform fees

In April 2023, Swiggy used to charge Rs 2 per order for food delivery, which has now increased to Rs 10 per order in one and a half years (about 18 months), that is, it has become 5 times more than before. The company had increased the fee on food delivery a few months ago, which is still high.