In a move indicating increased focus on profitability, food delivery giants Zomato and Swiggy have discontinued the ‘rain fee waiver‘ for their loyalty program members, Zomato Gold and Swiggy One, respectively. This means that even premium subscribers will now have to pay additional charges during adverse weather conditions, similar to regular users.
This policy change, implemented recently by both platforms, removes a key perk previously enjoyed by loyalty members, who were earlier exempt from surge fees applied during rains. In-app notifications have informed users of this alteration. Swiggy’s update reportedly stated that the removal of the rain surcharge waiver from One benefits would “support our delivery partners’ hard work.”
This decision comes at a time when both Zomato and Swiggy face mounting pressure from investors to improve their profit margins. For the fourth quarter of FY25, Zomato’s consolidated net profit saw a significant decline, while Swiggy’s net losses widened considerably, despite both companies registering substantial revenue growth. Eliminating the rain fee waiver for even their premium users appears to be a part of their broader strategy to enhance earnings per order.
Following this development, shares of both Zomato and Swiggy reportedly saw a positive movement in intraday trading.
Key Highlights:
- Zomato and Swiggy have removed the rain surcharge waiver for their loyalty program members (Zomato Gold and Swiggy One).
- This means premium users will now pay extra during rains, similar to non-members.
- The move comes as both companies face investor pressure to improve profitability.
- Shares of both Zomato and Swiggy saw a rise after this announcement.