Leading online platforms are introducing premium subscription tiers above their existing loyalty programmes, targeting high-value users as they seek to improve margins amid intensifying competition and slowing core business growth.
For instance, Zomato is testing a new ‘VIP Mode’ at Rs 50, effectively creating a pay-per-order premium option, where customers will get special services like fastest possible delivery, premium concierge support, and top-rated delivery partners. The service also offers refunds on delayed orders.
Premium push
Meanwhile, Swiggy which introduced One BLCK, in December 2024 as an exclusive, invite-only premium membership at Rs 299 for three months, has started rolling out the offering to a wider set of users. The offering provides exclusive benefits, including faster food deliveries, an on-time delivery guarantee or a refund of Rs 75, and complimentary cocktails or desserts when dining out, amongst other benefits. The platform has positioned this as the “business-class equivalent” for customers, sitting above its regular Swiggy One membership.
Walmart owned e-commerce major Flipkart has also launched Flipkart Black, priced at Rs 1,499 annually (with an early bird offer of Rs 990): offering a free one-year YouTube Premium subscription, 5% SuperCoins cash back on every purchase that can be redeemed across the Flipkart ecosystem, and exclusive additional discounts. This sits over and above Flipkart’s existing ‘Plus’ loyalty programme that is offered to frequently transacting users.
Analysts suggest several factors are driving this trend. The platforms are facing margin pressure from their aggressive quick commerce expansions. Added subscription tiers provides a way to monetise their most engaged users without alienating the broader customer base.
Margin pressures
Analysts said that the financial results for the April-June quarter provide context for this strategic shift. Eternal, the parent firm of Zomato, reported a 90% year-on-year decline in its consolidated net profit at Rs 25 crore during the period. However, the company’s revenue from operations for the quarter rose 70% to Rs 7,167 crore. Swiggy reported a consolidated net loss of Rs 1,197 crore, higher from a loss of Rs 611 crore in the same period last year. The company’s revenue from operations, however, jumped 52% to Rs 5,048 crore.
Additionally, platforms are recognising that their power users, those ordering multiple times a week, are willing to pay for enhanced experiences, analysts said. These users value speed, reliability, and exclusive perks more than price sensitivity. By creating these premium tiers, platforms can extract higher revenue per user without raising prices across the board (like in the case of platform fees). Experts also point to competitive dynamics: “With ONDC and new players entering the market with lower commission models, incumbents need to differentiate through service quality rather than just price. Premium subscriptions create a moat around high-value customers”.
Industry experts believe this is just the beginning of subscription stratification. However, the success of these premium tiers will depend on execution and value delivery. Critics point out that platforms are creating artificial scarcity around customer service quality, charging users extra for what was once standard service.