Food Delivery Loyalty Users No Longer Get Fee Waiver, Zomato Gold & Swiggy One Members Now Pay Rain Surcharge

Mumbai: This change was made through recent updates in the apps. Users were surprised because they already pay to be part of the loyalty programmes. But now, they will be treated the same as non-members when it comes to rain-related charges.

Both companies are under pressure to show profits. Eternal, which runs Zomato, had a 78 per cent drop in profits in the last quarter. It made only Rs 39 crore, down from Rs 175 crore a year ago. Swiggy reported a loss of over Rs 1,081 crore in the same period, which is almost double its loss last year.

Most of these losses are due to heavy spending on their quick commerce services. Quick commerce means delivering groceries and other items very fast. While this business is losing money, their food delivery service is still making profits. That’s why they are trying to earn more from each food order.

Another way they are doing this is by increasing platform fees. A few months ago, the fee was only Rs 2 per order. Now, it has gone up to Rs 10 in many cases. Since both companies deliver over 2 million orders every day, this fee increase brings in extra revenue of around Rs 2 crore daily for each company.

The rain surcharge is just one of the many steps being taken to boost earnings.

Zomato and Swiggy now charge rain surcharges from loyalty members too. Earlier, only non-members paid this fee. The change comes as both companies try to earn more from food delivery to cover quick commerce losses and increase daily profits.