Swiggy has announced that it will charge an additional 2% collection fee to select partner restaurants starting November 25. This new charge will apply on top of existing commissions and aims to cover rising payment-processing and operational costs. The move is expected to impact restaurant margins, menu pricing and overall platform economics.
Swiggy’s New 2% Fee Explained
Swiggy has informed select restaurant partners that a 2% additional fee will now apply on certain orders, mainly Swiggy One subscription-driven orders where Swiggy bears extra logistics and discount costs. This fee comes in addition to the already significant 17–25% commissions restaurants pay on each order.
Swiggy says the charge will help maintain “seamless customer payments” and support the growing volume of subscription-based orders.
Why Swiggy Introduced the New Fee
- Rising payment processing charges
- Higher operational and logistics costs
- Monetising Swiggy One orders, which offer deeper discounts
- Strengthening long-term unit economics
The company is also under pressure to improve profitability and catch up with industry competitors adjusting fee structures.
How This Impacts Restaurants
Margin Pressure
Restaurants already work with thin margins. Adding 2% on top of high commissions increases cost per order and reduces profitability.
Menu Price Increases
To absorb the new expense, restaurants may increase menu prices on Swiggy, which could reduce customer appeal.
Reduced Discounts
Restaurants might cut down on offers, combos or discounts to protect margins.
Platform Dependence
Some may shift marketing toward dine-in, takeaway or direct online ordering channels to reduce dependency on Swiggy.
How This Affects Consumers
- Higher menu prices on Swiggy
- Fewer discounts from restaurants
- Increased reliance on platform fees
- Changes in delivery-platform behaviours (switching between Swiggy and Zomato)
If restaurants pass on the fee to customers, ordering on Swiggy could become more expensive.
Industry-Wide Impact
The move sets a trend for fee restructuring across India’s delivery platforms. Zomato has already increased its own platform fees during peak seasons. Restaurants continue urging platforms to re-evaluate commissions and charges, while consumer sensitivity to price changes remains high.
Expect more adjustments across the delivery ecosystem as companies push for profitability.
What to Expect Next
- The fee may expand to more restaurants
- Possible negotiations between restaurant associations and platforms
- Swiggy may introduce revised partner benefits to justify the new fee
- Restaurants may explore alternative direct-ordering channels
- Consumers might see variable pricing between platforms
Conclusion
The Swiggy 2% fee on restaurants is a significant policy change that will affect restaurants, consumers and the food-delivery market as a whole. While Swiggy aims to improve operational efficiency, restaurants face higher costs that could push menu prices upward. The industry is watching closely to see how this shift shapes platform economics, competition and consumer behaviour in the coming months.
