Zomato has increased its platform fee per order, adding to the overall cost of food delivery for customers. The move comes amid rising operational expenses and intensifying competition in India’s rapidly evolving food delivery market.
Zomato has announced a fresh increase in its platform fee, raising it from ₹12.50 to ₹14.90 per order (pre-GST). This marks a hike of ₹2.40 per order and reflects the company’s ongoing efforts to manage rising operational costs.
The new pricing is already visible on the Zomato app and applies to all users placing food delivery orders. This adjustment follows the previous revision in September 2025, indicating a gradual upward trend in platform charges.
With the revised platform fee, customers will now pay more per order, even before factoring in additional costs such as delivery charges, taxes, and restaurant pricing.
After GST is applied, the effective platform fee increases further, contributing to a noticeable rise in the final bill amount. For frequent users, this incremental cost could significantly impact monthly food delivery expenses.
As customers have already expressed concerns over multiple charges—including delivery fees, packaging charges, and surge pricing—this latest hike may intensify discussions around affordability and transparency.
Zomato’s pricing revision comes close to the platform fee charged by its key competitor, Swiggy. Currently, Swiggy is charging approximately ₹14.99 per order (including taxes), keeping both platforms closely aligned in their fee structures.
Historically, the two companies have mirrored each other’s pricing strategies, especially in terms of platform fees and delivery charges. This trend suggests that competitive parity remains a key factor in their decision-making.
The food delivery market in India is witnessing new competition, adding pressure on established players like Zomato and Swiggy.
One notable entrant is Rapido, which has recently launched its food delivery service, Ownly, in Bengaluru. Unlike traditional platforms, Rapido has announced that it will not charge additional platform fees from customers or restaurants, apart from a standard delivery fee.
This alternative pricing model could appeal to cost-conscious users and restaurants, potentially disrupting the existing market dynamics.
The decision to raise platform fees is not entirely unexpected, given the broader economic environment. Rising crude oil prices have increased fuel costs, which directly affect delivery logistics.
Higher operational expenses—ranging from fuel and infrastructure to technology maintenance—are pushing food delivery platforms to explore ways to maintain profitability. Platform fees have emerged as one of the primary levers to offset these costs.
Additionally, companies must continue investing in customer experience, delivery partner incentives, and technological upgrades, all of which contribute to higher expenditure.
Food delivery companies operate in a highly competitive and price-sensitive market. While increasing fees can help improve margins, it also carries the risk of customer dissatisfaction.
Balancing profitability with affordability remains a key challenge. Platforms must ensure that fee hikes do not drive users toward competitors or alternative solutions, such as direct restaurant ordering or emerging low-cost services.
The entry of players offering minimal or no platform fees further complicates this balance.
In recent months, there has been growing customer awareness regarding the breakdown of food delivery costs. Many users have questioned the multiple charges added to their orders, including platform fees, delivery charges, and taxes.
This increased scrutiny means that platforms must be more transparent about pricing while continuing to justify their value proposition.
At the same time, convenience, speed, and reliability remain strong drivers of customer loyalty, which could help established platforms retain their user base despite incremental price increases.
The Indian food delivery market is expected to continue evolving, with competition intensifying and business models diversifying.
Established players like Zomato and Swiggy are likely to focus on optimizing operations, improving efficiency, and enhancing user experience to maintain their leadership positions.
Meanwhile, new entrants and innovative pricing strategies could reshape customer expectations, potentially leading to more competitive pricing or bundled offerings in the future.
Conclusion
Zomato’s decision to increase its platform fee to ₹14.90 per order reflects the broader challenges facing the food delivery industry. Rising costs, competitive pressures, and changing customer expectations are all influencing pricing strategies.
While the hike may impact customer bills, it also highlights the need for sustainable business models in a rapidly growing yet highly competitive market.