No More Free Rides: Swiggy & Zomato Make It Rain on Premium Subscribers

Image Source: DNA India

Swiggy has followed Zomato in withdrawing the waiver of rain surcharge for its paying subscribers, a big change in loyalty program advantage. Earlier, Swiggy One and Zomato Gold members were exempted from additional charges on wet days, but both platforms will charge these customers the same rain surcharges as non-subscribers from mid-May 2025.

Key Highlights:

Rain Fee Waiver Elimination: Swiggy informed through in-app notifications that rain fee waivers are no longer included in Swiggy One perks as a way to support delivery partners operating under unfavorable weather conditions. Zomato announced the same a day ago, restoring rain surcharges from ₹5 to ₹35 based on location and weather severity.
Effect on Premium Users: This step eliminates one of the major perks of paying users, bringing premium and non-premium users on par regarding weather-based delivery charges.
Profitability Push: Both the companies are facing investor pressure to raise margins. Swiggy had a 45% quarter-on-quarter and year-on-year increase in Q4 FY25 operating revenue to ₹4,410 crore but its net loss almost doubled to ₹1,081 crore. Eternal, parent of Zomato, had a 78% fall in quarterly profit after tax to ₹39 crore, even as its operating revenue grew 64%.
Market Reaction: Surprisingly, stock of both the companies increased by more than 3% after announcing the development, an indication of investor hope about the companies' attempt to get better financial controls.
Extra Charges: In addition to rain charges, both platforms have raised platform commissions on orders from ₹2 to ₹10 in most cities, adding to revenue from their core business of food delivery.

This policy shift highlights the balancing act food delivery behemoths must perform between keeping customer benefits and attaining sustainable profitability.

Sources: The Hindu Business Line, Outlook Money, Inc42