The stock of food delivery company Swiggy jumped over 5 percent from its day’s low after the company decided to raise its platform fee by 17 percent.
The stock, which opened higher by about 3.5 percent on the bourses on Tuesday, had slumped close to its 52-week low. The stock opened higher at Rs 282.25 compared to its previous close of Rs 272.5 on Tuesday.
It later slumped to its day’s low at Rs 268.50 apiece, which was just a whisker away from its 52-week low of Rs 267.15. Hence, during the day, the stock declined by up to 1.5 percent compared to its previous close.
However, the stock shed almost all of its losses to again surge close to its day’s high. It climbed to Rs 281, which was about 3.4 percent higher than the previous close. It ended the day at Rs 275.60, higher by 1.14 percent.
Earlier, the stock of the online food delivery giant was trading in the red for most trading sessions due to concerns of margin shrinkage amid elevated energy prices.
Since the government has restricted supplies of LPG (liquefied petroleum gas) to commercial users, there has been a slowdown in the eateries business. This had caused the stocks of Swiggy and its rival Zomato to decline.
However, Zomato announced a hike in platform fee on Monday. This was followed by Swiggy. The company has raised the platform fee to Rs 17.58 per order (including GST), up from Rs 14.99 earlier. This marks an increase of nearly 17 percent.
On Monday, Zomato also raised charges by Rs 2.40 per order, taking the pre-GST fee to Rs 14.90 from Rs 12.50 earlier. Zomato’s platform fee was around Rs 2 in 2023, showing a sharp rise as part of the company’s efforts to maintain profitability in a business that is known for burning cash.
