Food delivery giants Zomato (now rebranded as Eternal) and Swiggy have revised their loyalty programs in a way that may disappoint premium users. Subscribers to Zomato Gold and Swiggy One will now face a ‘rain surcharge’ during bad weather — a fee that was previously waived for these paying members.
According to Moneycontrol, the update was first noticed on the companies’ mobile apps and has since sparked frustration among loyal users. Previously, weather-related surcharges were reserved for non-members. Now, even those paying for premium plans aren’t exempt from the so-called “rain tax.”
This move appears to be part of a broader effort by both companies to boost profitability amid growing investor pressure. While the rain surcharge might seem small, it follows recent hikes in platform fees and signals a strategic shift in how Zomato and Swiggy are looking to monetise their most loyal customers.
Profit Pressures Drive Policy Shift
Eternal, the parent company of Zomato, reported a sharp 78% year-on-year decline in its profit after tax (PAT), dropping to ₹39 crore in Q4 FY25 from ₹175 crore in the same period last year. This also marks a fall from the ₹59 crore PAT reported in the previous quarter (Q3 FY25).
Meanwhile, Swiggy reported a staggering net loss of ₹1,081.18 crore in Q4 FY25 — a 94% increase from its ₹554.77 crore loss in Q4 FY24. Both Zomato and Swiggy are pouring significant resources into expanding their quick commerce operations, a fast-growing but margin-heavy segment that’s currently weighing down their overall profitability.
To support these new ventures, the companies seem to be extracting more revenue from their core food delivery business — and that includes passing additional costs onto their most loyal, paying users.
Platform Fee Sees Steady Hike
The rain surcharge isn’t the only extra charge users are facing. Both Zomato and Swiggy have steadily increased their platform fees in recent months — rising from just ₹2 per order to as much as ₹10 in many cities.
While the increase may seem modest on a per-order basis, the scale tells a different story. With each company processing over 2 million food orders daily, a ₹10 platform fee could translate to an additional ₹2 crore in daily revenue for each platform — a significant boost under the guise of a small charge.
While Zomato and Swiggy have yet to issue official statements on the changes, the move signals a clear shift away from the premium perks that once defined their loyalty programmes. Customers who subscribed expecting exclusive benefits now find themselves treated no differently than non-members — at least when it starts to rain.
Whether this new strategy will bolster the companies’ bottom lines or backfire by denting user loyalty remains to be seen. But one thing is clear: when the skies open up, ordering in just got pricier — regardless of the badge on your account.
Read the latest and breaking Hindi WWW.HINDI.THEINSIGHTTODAY.COM and English news on WWW.THEINSIGHTTODAY.COM. Get unbiased, reliable, and fast updates on India and the world. Explore news from politics, sports, Bollywood, business, cities, lifestyle, astrology, spirituality, jobs, and more. Stay informed anytime, anywhere by downloading The Insight Today mobile app now! Connect us WhatsApp channel The Insight Today