Zomato and Swiggy have quietly scrapped a popular perk from their loyalty programs – waiving surge fees during rainy weather. Members of Zomato Gold and Swiggy One will now be charged additional delivery fees during adverse weather conditions, just like non-subscribers.
A Subtle Shift for Subscribers
Until recently, loyalty members enjoyed exemptions from weather-related surcharges, a key benefit that helped justify the annual subscription fees. However, recent updates on both platforms confirm the discontinuation of this feature. Now, even paying members will face extra charges when placing orders in bad weather.
Growing Investor Pressure
The rollback comes as both delivery giants face increased pressure from investors to improve their profitability. While their core food delivery segments have turned profitable, the expansion into quick commerce – offering ultrafast deliveries of groceries and essentials – has proven costly and remains in the red.
To offset these losses, both Zomato and Swiggy are focusing on maximizing revenue from their primary food delivery businesses. Removing loyalty perks is just one part of this broader strategy.
Subtle Fee Hikes Add Up
Over the past several months, both companies have quietly introduced new charges to boost per-order earnings. One example is the platform fee, which has grown from ₹2 per order to ₹10 in many locations. While modest on a per-customer basis, with over 2 million orders daily, that amounts to an extra ₹2 crore in daily revenue per company.
Mounting Financial Challenges
Financial disclosures reveal the strain both companies are under. In Q4 FY25, Zomato – now rebranded as Eternal – reported a sharp 78% year-on-year decline in profit after tax, down to ₹39 crore from ₹175 crore in Q4 FY24. This also marked a drop from the ₹59 crore it earned in Q3 FY25.
Swiggy’s situation is even more severe. The company’s net losses widened to ₹1,081.18 crore in Q4 FY25, almost double the ₹554.77 crore loss reported in the same quarter a year earlier.
What This Means for Users
For loyal customers who paid for membership expecting consistent benefits, the rollback of perks like the rain fee waiver may come as a disappointment. It reflects a broader trend in the food delivery sector: as profitability becomes a priority, companies are reevaluating the value equation they offer to paying users.
As competition intensifies and business models evolve, the balance between customer satisfaction and sustainable profits remains a challenging one for India’s top food delivery platforms.
