Holi surcharge? Swiggy Instamart introduces festive handling fee on orders

Ahead of Holi, Swiggy Instamart on Wednesday introduced a ‘festive handling charge’, adding an extra fee for orders placed during the festival week. The new fee is similar to handling and surge charges imposed by quick commerce platforms.

This is the first time Swiggy has implemented a surge fee equivalent to its platform fee. The charge varies by location and is priced between Rs 8.90 and Rs 20.

Swiggy declined to comment on the development.

While handling fees remain constant throughout operations, platforms apply surge fees during peak hours. In India, food delivery and quick commerce platforms have been trying to add additional fees to bring in more revenue since Zomato went public in 2021. 

Neither Instamart nor Blinkit charges a platform fee, while Zepto does charge one.

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In the food delivery segment, Zomato and Swiggy have introduced a platform fee—an additional charge applied to every order, separate from delivery fees and restaurant commissions. This fee is mandatory and is not affected by discounts or membership programmes like Zomato Gold or Swiggy One.

Besides platform fees, both companies also charge delivery fees, which vary based on distance and demand, packaging charges, and surge pricing during peak hours. Some users may also encounter a convenience fee for specific services. 

While the platform fee appears small, it contributes significantly to the revenue for both companies, adding up across millions of orders daily.

For context, between August 2023 and March 2024, Zomato collected about Rs 83 crore from platform fees. This contributed to a 27% year-on-year revenue growth, with its total revenue reaching Rs 7,792 crore in FY24.