Zomato raises platform fee to Rs 14.9, second hike in six months

Zomato raises platform fee 19% to Rs 14.9 for all users

Food delivery major Zomato has increased its platform fee from Rs 12.5 to Rs 14.9 per order, a 19 percent hike across users, according to app listings reviewed by Moneycontrol.

The revision comes some six months after it raised the platform fee to Rs 12 in September to cash in on the festive season rush. To be sure, Zomato also charges a Rs 2.68 'GST on platform fee' on top of this charge.

Rival Swiggy, too, had raised its platform fee to Rs 14 around the same time, signalling a broader industry trend of monetising at the consumer end. However, Swiggy's platform fee is, which currently stands at Rs 14.99, is inclusive of GST.

What began as a nominal Rs 2 charge in 2023 has steadily evolved into a meaningful revenue stream. While the fee remains a small component of the overall order value, its contribution at scale is significant.

With Zomato processing an estimated 2.3–2.5 million orders daily, even marginal increases can translate into substantial annualised revenue.

A previous Moneycontrol analysis showed that platform fees across ecommerce and food delivery players together generate around Rs 3,500-4,000 crore annually.

From Swiggy and Zomato to Flipkart, Amazon and Myntra, nearly every major platform now levies a per-order fee to improve unit economics. In many cases, what started as a negligible charge has climbed sharply — in some instances by as much as 600 percent — making it a visible and recurring part of consumer bills.

For now, consumer resistance remains limited, especially as long as hikes are incremental. But analysts caution that in high-frequency categories like food delivery, there is a threshold beyond which demand could be impacted.

Alongside platform fees, Zomato has been layering other monetisation levers.

The company has piloted rain surcharges during bad weather and, more recently, begun testing a Rs 50 “VIP Mode” in select locations that promises faster deliveries, priority riders, and a concierge-style service for select top customers. Unlike subscription-led offerings such as Swiggy One, this feature allows Zomato to extract incremental revenue on a per-order basis.

It has also introduced a “long distance fee” payable by restaurants on orders delivered beyond four kilometres, drawing some pushback from smaller outlets, Moneycontrol reported earlier.