Food delivery companies Zomato (now called Eternal) and Swiggy have removed the surge fee discount for their loyalty program users during the rainy season.
This change was noticed in the latest app updates of both companies. Now, users of Zomato Gold and Swiggy One will also have to pay extra delivery charges during rains, just like regular users.
Previously, only non-loyalty users paid this extra fee. This move comes as both companies face pressure from investors to improve their financial situation.
How are Zomato’s Eternal and Swiggy doing financially?
Zomato’s parent company Eternal saw its net profit drop 78% year-on-year, falling to Rs 39 crore in the March 2025 quarter. In comparison, the company earned Rs 175 crore in the March 2024 quarter and Rs 59 crore in the December 2024 quarter.
On the other hand, Swiggy’s losses increased sharply. Its net loss for the March 2025 quarter rose by over 94% year-on-year, from Rs 554.77 crore to Rs 1,081.18 crore.
This big loss mainly comes from investments in quick commerce. However, the losses in quick commerce are balanced by profits from food delivery, and both companies are focusing on growing their food delivery business to support their quick commerce ventures.
Platform fees increased five times in a few months
In recent months, both Swiggy and Zomato have tried new ways to earn more from every order. One such way is increasing platform fees. Earlier, this fee was Rs 2 per order, but it has now risen to Rs 10 in most cases.
To understand how much extra this means for the companies, consider that both deliver over 20 lakh food orders daily. With Rs 10 per order, each company earns at least Rs 2 crore extra every day.
Since both companies deliver over 20 lakh food orders daily, this increase means each company earns at least Rs 2 crore extra every day from these fees alone.
