In a move that has sparked disappointment among loyal users, India’s food delivery giants Zomato (now renamed Eternal) and Swiggy have quietly rolled back a key benefit for their premium subscribers. As per in-app updates, members of Zomato Gold and Swiggy One will now have to pay surge fees during rainy weather, just like non-members.
This strategic reversal comes at a time when both companies are under intense investor scrutiny to improve their bottom lines, particularly as losses mount in their quick commerce divisions.
Loyalty No Longer Has Its Rainy Day Perks
Until recently, paying for Zomato Gold or Swiggy One came with a comforting perk — exemption from surge pricing during inclement weather. This helped loyal customers feel insulated from the unpredictability of delivery pricing during high-demand windows, especially the monsoon season.
Now, that cushion is gone.
According to recent updates on both apps, premium users will be treated on par with non-members when it comes to weather-based surge pricing. Despite paying an annual or monthly membership fee, they’ll still be asked to fork out an additional delivery fee when it rains.
The change has left many users feeling shortchanged and questioning the value of these loyalty programs.
Why the Sudden Shift? Profit Pressures Are Mounting
This rollback isn’t happening in a vacuum. Both Swiggy and Zomato are struggling with the high costs of scaling their quick commerce operations — namely Instamart for Swiggy and Blinkit for Zomato. While their core food delivery businesses remain profitable, they are increasingly being used to cross-subsidize losses from the rapid expansion of 10-minute grocery delivery.
Eternal (Zomato) reported a 78% year-on-year decline in profit after tax in Q4 FY25, falling from ₹175 crore in Q4 FY24 to just ₹39 crore. Its Q3 FY25 PAT was ₹59 crore, indicating a declining trajectory.
Swiggy’s numbers paint an even starker picture. Its net loss for Q4 FY25 nearly doubled to ₹1,081 crore, compared to ₹555 crore in the same period the previous year.
Clearly, the companies are in cost-containment mode — and every rupee counts.
Platform Fees: A Silent Revenue Booster
In addition to removing the surge fee waiver, both platforms have also been quietly increasing their platform fees. What started off as a nominal ₹2 has now ballooned to ₹10 per order for many users.
On the surface, it might not seem like much. But with each company processing over 2 million orders a day, even a ₹10 fee translates to ₹20 crore in daily revenue combined. That’s over ₹600 crore a month — a massive margin booster.
These small yet cumulative charges are clearly part of a broader strategy to extract more revenue per order without altering the core food prices.
User Experience vs Profitability: A Delicate Balance
The changes have triggered a wave of discontent online. Many long-time Gold and Swiggy One members are expressing disappointment, saying the benefits no longer justify the cost. Some are even reconsidering their memberships.
However, from a business standpoint, the rationale is clear. As Zomato and Swiggy continue to battle for dominance in the cutthroat quick commerce space, their ability to fund losses depends heavily on their profitable food delivery arms.
By charging all users equally during peak times and adding platform fees, they’re aiming to maximize order-level profitability and reduce their reliance on investor capital.
Credits: Money Control
What’s Next for Users?
While neither Zomato nor Swiggy has officially commented on the change, more such cost-cutting or monetization tweaks may be on the horizon. Users can likely expect:
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Higher packaging or handling charges
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Tiered delivery speeds with extra charges
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Revised loyalty program perks
As the food delivery market matures, loyalty programs may evolve from being reward-centric to more value-conscious and margin-friendly.
