Charges Rise to ₹14.9 Amid Rising Costs, Swiggy Competition & Profit Growth.
Zomato has increased its platform fee to ₹14.9 per order across India, marking nearly a 20% hike as the company responds to rising operational costs, inflationary pressures, and evolving unit economics in the food delivery sector.
Zomato Increases Platform Fee, Matches Swiggy Pricing
The latest fee hike brings Zomato in line with its key rival Swiggy, which currently charges ₹14.99 (inclusive of GST). This strategic pricing alignment reflects intensifying competition in India’s food delivery market while ensuring revenue stability.
Zomato had previously revised its platform fee in September, continuing a steady upward trend since the fee was first introduced in 2023 at just ₹2 per order.
Why Zomato Raised Platform Fees
The decision comes amid multiple cost pressures impacting the food delivery ecosystem:
- Rising LPG prices affecting restaurant operations
- Increasing fuel costs due to crude oil volatility
- Higher last-mile delivery expenses
- Supply chain disruptions linked to global instability
These factors have forced food delivery platforms to optimize margins while maintaining service quality.
Magicpin Holds Prices to Support Users and Restaurants
While Zomato and Swiggy have increased fees, magicpin has chosen not to raise its platform fee, currently set at ₹14.20 per order. CEO Anshoo Sharma stated that the company aims to keep food delivery affordable and support restaurant partners during a challenging phase marked by cost inflation and demand sensitivity.
Platform fees have evolved into a significant revenue stream for food-tech companies. Over the past three years, incremental increases have helped improve profitability and unit economics, especially as competition intensifies and discounts reduce. Zomato’s parent company, Eternal, has reported strong financial growth in recent quarters:
- Net profit surged 73% YoY to ₹102 crore (Q3 FY26)
- Adjusted revenue jumped 190% YoY to ₹16,692 crore
- Adjusted EBITDA rose to ₹364 crore
This growth has been driven by:
- Improved food delivery margins
- Expansion of quick commerce with owned inventory models
- Strong order volume growth
The core food delivery segment also achieved a record EBITDA margin of 5.4%, highlighting improved operational efficiency.
Impact on Consumers and Food Delivery Trends
For consumers, the increased platform fee may slightly raise overall order costs, especially when combined with delivery charges and surge pricing. However, demand remains resilient, supported by convenience and growing adoption of online food ordering.
At the same time, the industry is witnessing:
- Gradual stabilization in demand growth
- Increased focus on profitability over aggressive expansion
- Expansion of AI-driven logistics and delivery optimization
- Outlook for Zomato and Food Delivery Industry in India
Despite short-term cost challenges, Zomato remains focused on sustainable growth, targeting steady order volume expansion of around 20% YoY. The company is also investing in quick commerce, AI-led efficiencies, and ecosystem integration to stay competitive. With rivals like Swiggy and magicpin adopting different pricing strategies, the Indian food delivery market is entering a phase of consolidation, profitability focus, and smarter cost management.
The Zomato platform fee hike to ₹14.9 highlights a broader shift in the food delivery industry toward profitability and cost optimization. As inflationary pressures persist and competition intensifies, platforms are recalibrating pricing strategies while continuing to enhance user experience and operational efficiency.
