With the festive season around the corner, Zomato has increased its platform fee on food delivery orders from Rs 10 to Rs 12 per order, closely following rival Swiggy’s fee hike to Rs 14 in select cities. Introduced initially at Rs 2 in April 2023, Zomato’s platform fee has steadily risen over the past two years, timed often with festive demand surges to help offset rising operational costs. Swiggy also implements peak-season increases to manage delivery and logistics strain during high volumes.
This development was first reported by The Economic Times.
Financial Pressures Drive Fee Growth
Despite a strong 70% year-on-year revenue increase to Rs 7,167 crore in Q1 FY26, Zomato’s parent firm Eternal reported a dramatic 90% drop in net profit to Rs 25 crore during the same period. Meanwhile, Swiggy doubled its losses to Rs 1,197 crore even as revenue grew by 54%. Both companies continue heavy investments in quick commerce expansions—Blinkit (Zomato) and Instamart (Swiggy)—influencing their cost structures significantly.
Read this: BNP Paribas Invest Rs 3,220 crore in Zomato Parent, Exits Swiggy
How Much Profit
Zomato processes around 2.3 to 2.5 million food delivery orders daily as of mid-2025. In response to festive season demand and rising costs, the company recently increased its platform fee from Rs 10 to Rs 12 per order—a 20% hike. Only a Rs 2 can enhances its daily earning by over Rs 46-50 Lakhs, its sums upto Rs 180 crore a year.
Impact on Consumers and Partners
Platform fees are added on top of delivery, GST, and restaurant charges, making orders costlier, though the increase per order may seem modest. Many price-sensitive consumers voiced frustration as these hikes pile up. Zomato has also experimented with premium charges such as a rain surcharge and “VIP Mode” for faster deliveries.
Restaurants too are feeling the squeeze, balancing platform commissions—typically 16-30%—plus servicing long-distance deliveries and associated costs. New entrants like Rapido’s Ownly are challenging incumbents by offering restaurants significantly lower commission rates (8-15%), pushing platforms to rethink pricing and service offerings.
Quick Commerce Growth and Market Response
Zomato’s quick commerce arm Blinkit demonstrated impressive growth, with net order value up 127% year-on-year and surpassing food delivery in certain cities. Recent quarters saw the addition of 243 new Blinkit stores, totaling over 1,500 “dark stores,” while focusing on operational and margin efficiencies. Despite quick commerce margins improving marginally, the segment remains loss-making, prompting efforts to monetize grocery and food delivery services further.
Read this: Lenskart Partners with Blinkit to Deliver Glasses in 10 Minutes, Now Live in 7 Major Cities
Interestingly, Eternal’s stock responded positively with a 2% uptick following the platform fee hike announcements, reflecting investor confidence in the companies’ path to profitability amid tough competition.
What Lies Ahead?
Platform fee hikes are expected to be a temporary measure to stabilize margins during peak festive demand, with potential rollbacks later. However, the rise of low-commission competitors may force larger players to explore new pricing models and innovative loyalty programs. This dynamic underscores an ongoing balancing act where platforms seek sustainable growth without alienating consumers or restaurant partners.
Read this: Rapido Finally Launches its Food Delivery Service ‘Ownly’ in Parts of Bengaluru
Final Thoughts
Zomato’s latest platform fee increase is part of a broader industry trend shaped by fierce competition, changing consumer behaviors, and rising operational costs. As India’s food delivery landscape matures, the challenge for giants like Zomato and Swiggy will be to maintain service quality, grow market share, and drive profitability—while navigating price sensitivity in an increasingly crowded market
