By Kavita Mistry 
Zomato and Swiggy have recently removed a major benefit from their loyalty programs, Zomato Gold and Swiggy One, disappointing subscribers. Until now, these premium plans protected users from surge pricing during adverse weather, particularly heavy rain. However, both platforms have quietly updated their policies via in-app notifications, making even paying members subject to additional delivery charges under poor weather conditions. This move has sparked backlash among users, who now feel shortchanged despite their subscriptions.
Zomato & Swiggy Shift Focus to Food Delivery Amid Mounting Losses
The change comes as both companies face mounting financial pressure and are looking for ways to boost revenue and improve margins. Zomato, recently rebranded as Eternal, reported a steep 78% year-on-year decline in profit after tax, dropping to ₹39 crore in Q4 FY25 from ₹175 crore the previous year. Swiggy’s financial situation is even more strained, with its Q4 FY25 net loss nearly doubling to ₹1,081 crore compared to ₹555 crore in the same quarter last year.
Although core food delivery services remain profitable, significant investments in quick commerce—delivering groceries and essentials within minutes—have weighed heavily on overall earnings. To offset these growing losses, both platforms are turning to their food delivery segments for additional revenue.
Zomato, Swiggy Hike Fees to Boost Revenue Amid Cost Pressures
One major tactic has been increasing platform fees. Initially introduced as a nominal ₹2 charge per order, these fees have now risen to ₹10 in many cases. Given that both Zomato and Swiggy process over 2 million food orders daily, this hike can generate more than ₹2 crore in extra daily revenue for each company. The withdrawal of subscription perks and fee hikes indicate a strategic shift as both platforms prioritize profitability amid growing competition and operational costs.
Summary:
Zomato and Swiggy have removed surge pricing protection from their loyalty plans, disappointing subscribers. Facing rising losses and investing heavily in quick commerce, both firms are boosting revenue by raising platform fees, now ₹10 per order, potentially earning ₹2 crore daily. These moves reflect a shift toward profitability amid intense competition.