Zomato Hikes Platform Fee to ₹12 Per Order Ahead of Festive Rush

Food delivery giant Zomato has quietly raised its platform fee to ₹12 per order, a 20% hike from the earlier ₹10, just as the country gears up for the festive season. The move, though small in absolute numbers, is bound to catch the eye of India’s massive user base — especially since it comes at a time when order volumes typically spike.

From ₹10 to ₹12: Why It Matters

At first glance, ₹2 may not sound like much. But for a company that handles millions of orders every day, the math is significant. Even if Zomato clocks, say, 2 million daily orders, that extra ₹2 adds up to a cool ₹4 crore in additional daily revenue. Multiply that over a month, and we’re talking serious numbers.

The platform fee — introduced in 2023 — was initially seen as an experiment to offset operational costs. Over time, it’s become a steady line item that Zomato has nudged upward. This latest hike to ₹12 is the third revision in less than two years, suggesting the company sees it as a reliable lever for revenue generation.

Balancing Profitability and Growth

The timing is interesting. Zomato has recently reported strong quarterly results, with its food delivery business finally turning profitable on an adjusted EBITDA basis. Investors have been pressing for consistent profitability, not just growth at any cost.

By tweaking platform fees rather than commission rates (which tend to upset restaurant partners), Zomato is essentially passing part of the burden onto consumers — but in a way that feels small enough to avoid serious backlash.

From a business standpoint, it’s clever. From a consumer standpoint, it might sting — especially for frequent users who already pay delivery charges, GST, and in some cases, surge fees during peak hours.

The Festive Season Factor

Festive months — from Durga Puja and Diwali to Christmas and New Year’s — are peak time for food delivery apps. Order volumes jump, late-night snacking goes up, and customer willingness to pay a few extra rupees is generally higher.

By rolling out the hike now, Zomato ensures that its margin cushion is a little fatter during the busiest quarter of the year. Rival Swiggy, which often mirrors Zomato’s pricing strategies, hasn’t announced a similar hike yet, but industry watchers say it’s only a matter of time.

Consumer Reactions: Small Change, Big Debate

Social media chatter is already heating up. Some customers are dismissing the hike as trivial — “₹2 won’t kill anyone,” as one X user put it. Others, however, see it as another example of hidden costs creeping into the online delivery ecosystem.

It’s worth noting that the platform fee is not waived even for Zomato Gold members, who already pay a subscription fee for discounts and free delivery. That might ruffle a few feathers among loyalists who feel they’re being double-charged.

The Industry Context

Globally, food delivery platforms have struggled with the same challenge: how to make unit economics work in a hyper-competitive, low-margin industry. Companies like Uber Eats and DoorDash have all introduced similar “service” or “platform” fees, which customers gradually accept as part of the deal.

In India, the economics are even tougher. With low average order values (compared to Western markets), even tiny tweaks can make or break margins. A ₹2 hike may not move the needle much for an individual customer, but for Zomato, it could add hundreds of crores annually to the top line.

What This Means Going Forward

The bigger question is whether these hikes will become a regular occurrence. Will we see ₹15 platform fees by next year? Or is this Zomato testing the upper limits of consumer tolerance?

Industry experts believe that as long as the increments stay small and infrequent, customers are unlikely to churn. After all, convenience often trumps cost. But there’s a thin line between smart monetisation and customer fatigue.

For now, Zomato has managed to pull off a delicate balancing act: keep restaurants happy, keep investors happy, and hope customers don’t mind the extra couple of rupees.

Bottom Line

Zomato’s latest move reflects the maturing phase of India’s food delivery industry. The days of endless discounts and free deliveries are long gone. Today, it’s about building a sustainable, profitable business — even if it means customers pay a little more for the same plate of biryani.

And let’s be honest: with the festive season around the corner, most of us will probably still hit that “Order Now” button anyway.