You May Soon Have To Pay More For Your Swiggy Instamart Orders; Quick Commerce Company To Hike Delivery Charges
Using Swiggy's cutting-edge technology and specialised delivery fleet, Swiggy Instamart, India's premier rapid commerce platform, was introduced in August 2020.
The food and grocery delivery apps have made life comparatively easier for people as everything is just one click away. However, the additional high fees or charges on the apps are not very much liked by the people. In order to improve the unit’s profit profile, Swiggy, a food tech and grocery delivery company, is thinking of raising delivery costs for consumers who place orders on its rapid commerce division, Instamart, according to chief financial officer (CFO) Rahul Bothra, as reported by Moneycontrol.
Why Swiggy Plans To Increase Delivery Cost On Instamart?
Image Credit: Canva
Rahul explained that through the Swiggy One subscription program and the introduction of the new service to customers in the delivery charge structure, the company obtains a certain amount of subsidy. He also mentioned that over time, there is a growing expectation that the delivery fee would increase. However, no specifications were given about when the changes will be applied, as reported by Moneycontrol.
Users can benefit from apps with loyalty programs, such as free delivery. While some customers pay an extra delivery price, Swiggy One (loyalty program) members receive delivery for free. Zomato’s Blinkit, on the other hand, does not have a loyalty scheme and charges a delivery fee for each order. Zepto, another major company, charges others, like Swiggy Instamart, for delivery but waives it for Zepto Pass (loyalty fee) members.
An important part of Swiggy, Instamart, generated adjusted sales of ₹513 crore in Q2FY25, up from ₹240 crore the year before. However, in comparison to Blinkit’s revenue of ₹1156 crore, Swiggy still needs to up its game.
Using Swiggy’s cutting-edge technology and specialised delivery fleet, Swiggy Instamart, India’s premier rapid commerce platform, was introduced in August 2020 and operates in 43 cities, delivering groceries to Indians in ten to fifteen minutes.
Over the last 18 months, the food delivery company Swiggy has raised its platform charge from ₹2 to ₹10. In April 2023, the business began charging a small fee of ₹2 for each order, irrespective of the quantity of the order or the customer’s profile. In the last 18 months, the platform fee has increased five times, and the corporation has continued to charge the higher amount after seeing the intended outcomes.
Cover Image Credit: Wikimedia Commons & Canva
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First Published: December 04, 2024 5:29 PM
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