Zomato Implements Significant Platform Fee Increase to Rs 14.9 Per Order
In a notable move affecting millions of users, food delivery giant Zomato has officially raised its platform fee to Rs 14.9 per order, up from the previous rate of Rs 12.5. This adjustment, now live on the app, represents a substantial increase of approximately 19.2% for each transaction placed through the platform.
Historical Context and Competitive Landscape
This latest hike marks a dramatic escalation from Zomato's platform fee of just Rs 2 in 2023, illustrating a rapid upward trajectory in recent years. With the new fee, Zomato's charge is now extremely close to what its main competitor, Swiggy, levies—Rs 14.99 per order, inclusive of GST. The platform fee is a mandatory charge applied to every order processed via the app, regardless of order value or location.
The revision comes several months after the previous fee adjustment in September 2025, signaling a strategic shift as the company navigates a challenging economic environment. This move occurs against a backdrop of rising operating costs across the food delivery sector, which could have ripple effects on restaurants, delivery partners, and ultimately, consumers.
Platform Fee as a High-Margin Revenue Stream
While the platform fee might appear modest at an individual customer level, industry insiders reveal it serves as a critical high-margin revenue lever for food tech companies. According to a report in the Economic Times, an unnamed senior executive from a food tech firm explained, "Platform fees are one of the cleanest levers in the model. Unlike delivery or discounts, there’s minimal associated cost, so most of it straightaway contributes to the profit."
The executive further noted that there is little incentive for competitors to undercut on platform fees, as these charges have become an accepted component of consumer bills, similar to convenience fees in ticketing. Another industry leader highlighted consumer behavior trends, stating, "In quick commerce, users tend to respond to rising fees by either increasing basket sizes to justify the cost, or cutting down on frequency of orders. The same dynamic is likely to play out in food delivery, especially among price-sensitive users that platforms are currently trying to bring back."
Broader Implications for the Food Delivery Ecosystem
The fee increase underscores broader challenges within the food delivery industry, where companies are grappling with:
- Escalating operational expenses
- Pressure to maintain profitability amid intense competition
- The need to balance customer acquisition with revenue generation
- Strategies to retain value-conscious consumers through targeted initiatives
As Zomato aligns its pricing more closely with Swiggy, the move may signal a stabilization of platform fees across the sector, potentially reducing price wars but increasing the overall cost burden on end-users. Observers will be watching closely to see how this adjustment impacts order volumes, customer loyalty, and the financial health of restaurants and delivery partners in the coming months.
