Your Next Swiggy or Zomato Order Could Cost More: Here’s Why

Rising fuel prices could soon reflect in the cost of ordering food or groceries online. According to a report by Elara Capital, the recent petrol price hike is likely to create a near-term cost headwind for food delivery and quick commerce platforms such as Eternal and Swiggy.

The brokerage said that while the overall financial impact on the companies remains manageable for now, some part of the higher delivery cost may eventually be passed on to customers through higher delivery fees, platform charges or pricing adjustments.

Elara estimates that the average delivery cost stands at ₹35–50 per order for quick commerce and ₹55–60 per order for food delivery. On a blended basis, this works out to about ₹45 per order for Eternal and ₹55 for Swiggy. If fuel accounts for nearly 20% of this cost, the implied fuel expense per order is around ₹9–10.

With petrol and diesel prices rising by about 4% (around ₹4 per litre), the immediate impact works out to roughly ₹0.44 per order. However, if fuel prices rise further to around ₹10 per litre over the next 3–6 months, the per-order impact could increase to ₹1–1.2, the report noted.

How EVs and Cycles Reduce Impact

The brokerage added that the actual impact is lower after accounting for electric vehicles and cycles used in deliveries.

EV and cycle usage is estimated at 30–40% in quick commerce and about 20% in food delivery. On a blended basis, only around 70% of orders are directly exposed to fuel price changes.

Even in a worst-case scenario of a ₹10 per litre increase, Elara estimates the net EBITDA impact at around ₹1–2 billion. This translates into a 4–5% impact on FY27 adjusted EBITDA for Eternal and 10–12% for Swiggy, assuming companies do not pass on the cost to customers.

Eternal Better Placed than Swiggy

Elara believes Eternal is better positioned to manage fuel-led cost pressures. The report said Eternal’s relatively premium customer base, stronger scale and higher advertising revenue give it more flexibility to recover costs through fees and charges.

Swiggy, on the other hand, may face higher pressure as it is still working towards contribution break-even in its quick commerce business and has a lower profitability cushion.

Second-Order Risks to Watch

Beyond delivery costs, Elara flagged a broader risk. Sustained high fuel prices could affect consumer spending, order frequency and advertising spends by restaurants and brands on these platforms.

While the first-order impact of fuel prices appears manageable, the report said the larger risk lies in how fuel inflation may affect consumption trends and platform revenues over time.