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Time of India
07-07-2025
- Business
- Time of India
Blink and you pay: The 10-minute tomato and cola might cost more than you think
A few months ago, buying a bunch of bananas or a packet of sugar at 10pm with just a few taps on your phone felt like magic. For many in India's big cities, 10-minute grocery delivery became a habit — a small luxury that promised speed and ease. But now, that convenience is coming at a cost, ToI reported. More and more users of Swiggy Instamart , Blinkit , and Zepto are noticing that their bills have started to creep up — not because of the items themselves, but because of the quiet add-ons. From handling fees to rain surcharges, small cart penalties to surge pricing, consumers say they are now paying up to ₹50 extra on every small order. The growing list of charges includes a fixed handling fee of ₹10 to ₹21, along with GST, delivery charges, small cart fees, rain fees, and surge pricing when applicable. While people still enjoy the convenience, many shoppers are going back to comparing prices — both offline and across different online platforms — before opening their quick commerce apps. What once gave these platforms an edge over neighbourhood kiranas — better prices and delivery speed — is now being undone by their rising fee structures. Delhi-based consumer Urvashi Sharma said, "I buy fruits and vegetables from local vendors now. Fruits, for example, tend to be cheaper by ₹30-40. Tomatoes and peas usually are cheaper online, but if you add handling and delivery fees, it comes to the same amount." Market researcher Satish Meena, adviser at Datum Intelligence, said that earlier, customers didn't think twice before placing frequent, small orders. But now they're more cautious — often delaying purchases or clubbing them together to avoid paying extra fees again and again. This shift in behaviour could hurt the gross order value (GOV) of these platforms and slow the movement of goods, which in turn increases the cost of running their dark stores. Live Events You Might Also Like: Quick commerce apps stack up extra fees to curb losses "Consumers are finding quick commerce a bit expensive, but convenience is still the winner. The platforms are trying to move consumers to planned purchases through plans like Super Saver and Maxxsaver, but there's a long way to go," Meena said. Fee structures are not just increasing — they are also becoming harder to track. Swiggy and Zepto typically waive delivery fees if the order is worth around ₹200 or more. But Blinkit requires customers to spend at least ₹500 for free delivery. The platforms did not comment on their pricing policies. Even the fixed fees aren't all that fixed. Swiggy's Instamart can charge anywhere between ₹10 and ₹15 depending on the order value. Zepto usually charges ₹21 for larger orders and ₹13 for smaller ones. Blinkit's handling fee is typically ₹11. Rain fees and surge fees are generally ₹15 and ₹30, respectively, and can be added when demand spikes or weather worsens. For companies still running at a loss, these added charges help improve their financials. But for customers placing last-minute or small-sized orders — the kind that built the quick commerce habit in the first place — the rising costs are hard to justify. Mumbai-based professional Nandini Paul said that even though she pays for premium services like Swiggy One and Zepto Daily to get discounts and benefits, she often ends up paying more than she would on Blinkit for the same basket. "Despite paying for Swiggy One membership and Zepto Daily to avail discounts and other benefits, I often end up paying higher prices on the platforms for the same cart compared to Blinkit," she said. Another customer pointed out the illusion of discounts and free delivery. "There are hidden charges on quick commerce platforms and an illusion of discounts. These days, I think, if I had more time, I would directly shop from the market. But the fact that I can shop anytime of the day is a plus," the consumer said. A recent JM Financial research note said most quick commerce platforms have increased the minimum order value needed to get free delivery. In a comparison of 11-item orders across Instamart , Zepto, Blinkit, and DMart Ready, Blinkit turned out to be the most expensive, while DMart Ready was the cheapest. According to a report by Bain, quick commerce companies have improved their financials by increasing the value of each order, cutting supply chain costs, and boosting profit margins. They have done this by sourcing goods directly from farmers and producers, and by earning more through ads and platform fees. But to keep growing in a profitable way, these firms will have to change their business strategies for smaller towns and cities, deal with more competition, and make supply chains more efficient. The market is also shifting to a two-speed model, where a few products will be delivered in under 15 minutes, while a wider range will arrive within an hour. As quick commerce expands into more cities and begins selling larger items like consumer electronics, the logistics will become more complicated. How well these platforms manage those challenges will decide how much of the overall e-commerce market they can capture. The sector remains crowded, and while there is space for both kiranas and online platforms, one question continues to trouble consumers — how much is too much to pay for convenience? (with ToI inputs) Economic Times WhatsApp channel )
Time of India
06-07-2025
- Business
- Time of India
How much would you pay for 10-min delivery?
Having groceries delivered at your doorstep home in 10 minutes is very convenient for people especially in metro cities. Shopping on quick commerce apps has become a habit for many, but a section of consumers has started to feel the pinch of instant deliveries. Platforms such as Swiggy Instamart, Blinkit, and Zepto, which control the bulk of the market, are adding a range of fees to the bill, due to which consumers are shelling out up to Rs 50 extra every time they place an order. Price Comparison Is Back To begin with, consumers have to pay a handling charge, which is fixed for every order and ranges between Rs 10-21. Add GST, delivery charge, small cart fee, rain fee, and surge fee (when applicable), and the bill gets inflated. While it doesn't mean that people don't want to pay for convenience, many consumers have started planning their purchases once again. They are now comparing offline prices and those across different e-tail formats before shopping on quick commerce platforms. Also, the leverage of better pricing the platforms initially had over kiranas and local vendors seems to be getting eroded due to the fee structure. "I buy fruits and vegetables from local vendors now. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Fruits, for example, tend to be cheaper by Rs 30-40. Tomatoes and peas usually are cheaper online, but if you add handling and delivery fees, it comes to the same amount," said Delhi-based consumer Urvashi Sharma. Behaviour Shift, Again Earlier, consumers were not counting the number of times they placed an order through quick commerce platforms. But now, they are delaying their purchases or waiting to club a few orders and then shop to avoid paying extra charges every time, said Satish Meena, adviser at market research firm Datum Intelligence. A decline in order frequency could impact GOV (gross order value) of companies, and the goods will also move slower, adding to the cost of dark stores, Meena said. "Consumers are finding quick commerce a bit expensive, but convenience is still the winner. The platforms are trying to move consumers to planned purchases through plans like Super Saver and Maxxsaver, but there's a long way to go," Meena said. Tough To Track Fees A consumer can escape delivery fees on Swiggy and Zepto if they shop for Rs 200 or so, but on Blinkit, they will have to spend at least Rs 500 for free delivery. The platforms declined to comment. The charges can also be arbitrary - on Instamart, for instance, the handling charges can vary from Rs 10-15 depending on the order value. For Zepto, it usually is at about Rs 21 for large orders and Rs 13 for small ones. On Blinkit, handling charges tend to be fixed at Rs 11. Rain and surge fees are typically set at Rs 15 and Rs 30, respectively. For platforms, most of which are in the red, adding extra charges helps in improving their economics, but for a consumer looking to place a small, impromptu order, paying extra may not always be feasible. Ironically, this was the whole premise of quick commerce when it started making its way into households. According to Nandini Paul, a Mumbai-based professional, despite paying for Swiggy One membership and Zepto Daily to avail discounts and other benefits, she often ends up paying higher prices on the platforms for the same cart compared to Blinkit. Min Order Value Rising "There are hidden charges on quick commerce platforms and an illusion of discounts. These days, I think, if I had more time, I would directly shop from the market. But the fact that I can shop anytime of the day is a plus," said another consumer. In a recent research note, JM Financial said that most platforms have raised the minimum order value to unlock free deliveries. An analysis of orders placed for 11 items across Instamart, Zepto, Blinkit, and DMart Ready showed that Blinkit is the most expensive while DMart Ready is the cheapest. "The entrance of more value-first players like Flipkart and Amazon in the space should pull prices down in quick commerce. We do expect the platforms to discourage small ticket size purchases, which initially was encouraged as a way to develop commerce will always command a premium compared to modern trade but will offer better value than kiranas," said Siddharth Jain, managing partner and country head at Kearney India. There is space for every kind of retailer, but it all boils down to one question - how much is too much to pay for convenience? Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
10-05-2025
- Business
- Time of India
Swiggy's Q4 net loss nearly doubles to Rs 1,081 cr
HighlightsSwiggy's consolidated net loss widened to Rs 1,081.18 crore for the March quarter, compared to a net loss of Rs 554.77 crore in the same period last year. The losses were attributed to significant investments in quick commerce. The company's revenue from operations increased to Rs 4,410 crore during the January-March period, up from Rs 3,045.5 crore a year earlier. Swiggy's average order value for its Instamart service grew by 13.3 percent to Rs 527, and the number of monthly transacting users surged 40 percent quarter-on-quarter to 9.8 million. Food delivery and quick commerce platform Swiggy on Friday reported widening of consolidated net loss during the March quarter to Rs 1,081.18 crore, due to significant investments in quick commerce. The company had reported a net loss of Rs 554.77 crore on a consolidated basis in the year-ago period. Swiggy's revenue from operations rose to Rs 4,410 crore during the January-March period, as against Rs 3,045.5 crore a year earlier, a regulatory filing showed. However, its total expenses shot up to Rs 5,609.6 crore during the quarter under review, as against Rs 3,668 crore in the corresponding period of the previous year. In a statement, Swiggy said the gross order value (GOV) of its food delivery business continues to grow in line with guidance at a healthy 17.6 per cent year-on-year, to Rs 7,347 crore. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 15.4 per cent quarter-on-quarter and over five times year-on-year to Rs 212 crore, and strong efficiency and execution drove a margin expansion to 2.9 per cent of GOV, up from 0.5 per cent a year ago. Swiggy Instamart average order value increased 13.3 per cent to Rs 527 during the quarter. Instamart added 316 new dark stores -- an increase of 45 per cent sequentially -- its highest-ever during a quarter. Investments into customer acquisition amidst high competitive intensity saw monthly transacting users (MTUs) surge 40 per cent quarter-on-quarter to 9.8 million, the company said. Swiggy MD & Group CEO Sriharsha Majety said, "Quick-commerce is in a phase of rapid expansion and heightened competitive intensity, for which we have ramped up investments aimed at market expansion (Megapods), reach (1,000+ stores across 124 cities) and differentiation (Maxxsaver). Our Out of Home Consumption business turned profitable in Q4, within just 2 years of its integration. Overall, we remain focused on growth, on the back of delivering unparalleled convenience to consumers."
Business Standard
10-05-2025
- Business
- Business Standard
Swiggy net loss widens to Rs 1081 crore in Q4FY25
Swiggy reported a net loss of Rs 1,081.18 crore for the quarter ended March 2025 (Q4 FY25), nearly doubling from Rs 554.77 crore in the same quarter last year. Revenue from operations rose 44.8% year-on-year to Rs 4410.02 crore in Q4FY25. The company's widening losses were primarily attributed to elevated spending on its quick commerce arm, Instamart. Swiggy increased investments in customer acquisition, dark store infrastructure, and marketing efforts amid intensifying competition, resulting in higher operating expenses. Total expenditure jumped 52.93% year-on-year to Rs 5,609.67 crore in Q4 FY25. Employee benefits expenses rose 25.79% YoY to Rs 695.60 crore, while spending on advertising and sales promotion skyrocketed 135.46% to Rs 977.72 crore. Platform Gross Order Value (B2C GOV) rose ~40% YoY to clock Rs 12,888 crore. However, consolidated adjusted EBITDA loss increased to Rs 732 crore due to significant growth investments in quick-commerce. The food delivery business Gross Order Value (GOV) rose 17.6% YoY to Rs 7,347 crore. Adjusted EBITDA grew 15.4% QoQ and over 5x YoY to Rs 212 crore, and strong efficiency and execution drove a margin expansion to 2.9% of GOV, up from 0.5% a year ago. The growth was backed by innovative services like speedier deliveries through Bolt (which powers 12% Food delivery orders already) and differentiated propositions like the top-tier subscription programme One BLCK continued to drive up consumer traction. Instamart accelerated its GOV growth to 101% YoY (19.5% QoQ), clocking Rs 4,670 crore in Q4. Average order value increased by 13.3% YoY to Rs 527. Instamart added 316 new darkstores (+45% QoQ), its highest-ever during a quarter; driving up active darkstore area to 4 mn sq ft (+62% QoQ) in line with guidance. Led by the growth investments, contribution margin declined from -4.6% in Q3FY25 to -5.6% in Q4FY25 and adjusted EBITDA loss increased to Rs 840 crore. Sriharsha Majety, MD & Group CEO, Swiggy, said "FY25 was a year of many firsts for Swiggy. We launched multiple new apps, across Instamart, Snacc and recently, Pyng; all of which are aimed at opening up new user-segments and markets. Our Food delivery engine delivered best-ever results across innovation and execution, driving category-leading growth and rising profitability in lockstep. Quick-commerce is in a phase of rapid expansion and heightened competitive intensity, for which we have ramped-up investments aimed at market expansion (Megapods), reach (1000+ stores across 124 cities) and differentiation (Maxxsaver). Our Out of Home Consumption business turned profitable in Q4, within just 2 years of its integration. Overall, we remain focused on growth, on the back of delivering unparalleled convenience to consumers." Swiggy is Indias pioneering on-demand convenience platform. With a footprint in food delivery, Swiggy Food collaborates with over 2.5 lakh restaurants across ~700 cities. Swiggy Instamart, its quick commerce platform operating in 120+ cities, delivers groceries and other essentials across 20+ categories in 10 minutes.
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Business Standard
09-05-2025
- Business
- Business Standard
Swiggy Q4 results: Loss widens to ₹1,081 cr despite record Instamart growth
Food delivery aggregator Swiggy saw its loss widen for the fourth quarter (January-March) of financial year 2024-25 (Q4FY25). The firm reported a consolidated loss of ₹1,081.1 crore for the quarter, compared to a loss of ₹554.7 crore in the corresponding quarter of FY24. The platform's consolidated revenue from operations jumped by 44.8 per cent to ₹4,410 crore from ₹3,045.5 crore in Q4FY24. For the full year, the company reported a loss of ₹3,116.7 crore, compared to the loss of ₹2,350 crore in FY24. Revenue for the full year touched ₹15,227 crore, up 35 per cent year-on-year (Y-o-Y). The company's losses widened as it invested in the quick commerce (qcom) business. Food delivery business reported revenue of ₹1,629.3 crore for Q4FY25, up 18.4 per cent Y-o-Y. Sequentially, revenue was flat with a marginal growth of 0.45 per cent. Quick commerce revenue almost doubled to ₹689 crore for Q4FY25 from ₹320.7crore in Q4FY24. Swiggy MD and Group CEO Sriharsha Majety said that FY25 was a year of many firsts for the firm. 'We launched multiple new apps, across Instamart, Snacc and, recently, Pyng, all of which are aimed at opening up new user-segments and markets,' said Majety. 'Our food delivery engine delivered the best-ever results across innovation and execution, driving category-leading growth and rising profitability in lockstep,' he added. Majety said the qcom industry is in a phase of rapid expansion and heightened competitive intensity, for which they have ramped up investments aimed at market expansion (Megapods), reach (over 1,000+ stores across 124 cities), and differentiation (Maxxsaver). 'Our 'out of home consumption' business turned profitable in Q4FY25, within just two years of its integration. Overall, we remain focused on growth, on the back of delivering unparalleled convenience to consumers,' said Majety. The company said its food delivery business' gross order value (GOV) continued to grow in line with guidance at a healthy 17.6 per cent Y-o-Y to ₹7,347 crore. 'Adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) grew 15.4 per cent quarter-over-quarter (Q-o-Q) and over five times Y-o-Y to ₹212 crore, and strong efficiency and execution drove a margin expansion to 2.9 per cent of GOV, up from 0.5 per cent a year ago,' said the firm. 'Improved salience through innovative services like speedier deliveries through Bolt (which powers 12 per cent food delivery orders already) and differentiated propositions like top-tier subscription programme 'One BLCK' continued to drive up consumer traction,' the company said. On the other hand, the company's qcom arm Swiggy Instamart accelerated its GOV growth to 101 per cent Y-o-Y (19.5 per cent Q-o-Q), clocking ₹4,670 crore in Q4. Average order value increased by 13.3 per cent Y-o-Y to ₹527 crore. 'Instamart added 316 new darkstores (+45 per cent Q-o-Q), its highest-ever during a quarter, driving up active darkstore area to 4 million square feet (msft) (+62 per cent Q-o-Q) in line with guidance,' said Swiggy. 'Investments in customer acquisition amid high competitive intensity saw MTUs (monthly transacting users) surge 40 per cent Q-o-Q to 9.8 million. Led by these growth investments (which imply a lifetime-high proportion of new stores and users in the operating mix), contribution margin declined from -4.6 per cent in Q3FY25 to -5.6 per cent in Q4FY25, and adjusted Ebitda loss increased to ₹840 crore,' said the company. Overall, Swiggy said the platform's business-to-consumer (B2C) GOV rose about 40 per cent Y-o-Y to clock ₹12,888 crore. It said consolidated adjusted Ebitda loss Y-o-Y increased to ₹732 crore due to significant growth investments in qcom. The platform's average MTU increased 35 per cent Y-o-Y to reach 19.8 million, with 35 per cent of all users utilising more than one service on the platform. The company said that Q4 is a seasonally weak quarter coming after the festive season, though it does benefit late in the quarter due to a popular sporting event. The qcom industry is going through a phase of heightened consumer awareness and store rollouts. 'Hence, we brought forward our expansion plans and added more stores than originally envisaged during the second half (H2) of FY25. With 498 new stores added over FY25, nearly half of our darkstores are less than a year old, with the average age of these stores being under four months,' according to Swiggy's shareholders' letter for Q4FY25. This has resulted in a higher underutilised network cost, which otherwise would have been spread over a longer period of time. Alongside these, customer incentives (including delivery fee discounts) have been at an elevated level, led by competitive intensity and launches in new geographies. The company said it had ₹6,695 crore cash and cash equivalents as of March 31, 2025. The shareholders' letter said the firm's 10-minute food delivery service Bolt provides a growing base of restaurant partners a full-stack and scaled-up route to participate effectively in the quick-food-delivery space. Over 45,000 restaurant brands across more than 500 cities are on Bolt today, offering 47 lakh dishes spanning 26 diverse cuisines. 'We work with restaurant partners on their internal processes to enable the preparation of food in sub-five minutes, while making available to them a delivery fleet almost on tap,' said the company.
