Zomato increased its platform fee from ₹10 to ₹12 per order on September 2, 2025, marking a 20% hike just ahead of the festive season. The move follows rival Swiggy‘s similar strategy, signaling intensified competition in India’s food delivery market.
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Platform Fee Wars: Zomato vs Swiggy Battle for Margins
Shares of Eternal Ltd (Zomato) traded flat after hitting a day’s high of ₹328.75 following the fee announcement, suggesting investors expected the strategic price adjustment.
Fee Evolution Timeline
| Period | Zomato Fee | Market Context | Strategy |
|---|---|---|---|
| July 2024 | ₹6 | Metro expansion | Market testing |
| Festive 2024 | ₹10 | “Festive platform fee” | Seasonal surge |
| September 2025 | ₹12 | Pre-festive positioning | Margin optimization |
Impact on Customer Orders
Cost Breakdown for Typical Order:
- Platform fee: ₹12 (up from ₹10)
- GST on platform fee: ₹2.16 additional
- Total extra cost: ₹4.16 more per order
The timing coincides with expected festive season demand surge, similar to rival Swiggy’s strategy of increasing fees to ₹14 in select pin codes.
Strategic Rationale Behind the Hike
The increase represents the latest in a series of hikes aimed at bolstering margins as rival Swiggy follows a similar playbook. Both companies are prioritizing profitability over market share growth.
Business Justifications:
- Festive demand surge: Higher order volumes expected
- Operational costs: Increased delivery partner incentives
- Margin improvement: Path to sustainable profitability
- Market positioning: Competing with Swiggy’s pricing strategy
Customer Reaction and Market Impact
The latest move sparked a wave of customer frustration online, with users questioning the value of premium subscriptions like Zomato Gold when platform fees continue rising.
Consumer Concerns:
- Recurring fee increases despite loyalty programs
- Additional GST burden on platform fees
- Timing during festive season when spending is already high
- Competition between platforms not benefiting consumers
Revenue Impact and Growth Projections
The ₹2 increase could generate significant additional revenue for Zomato given its massive order volume. This marks exactly one year since Zomato last increased platform fees, indicating strategic timing for annual adjustments.
Financial Implications:
- Higher per-order revenue realization
- Improved unit economics for food delivery
- Enhanced investor confidence in profitability path
- Competitive positioning against Swiggy
What This Means for Indian Food Delivery Market
The synchronized fee hikes by both Zomato and Swiggy indicate market maturity where profitability takes precedence over aggressive customer acquisition. This shift reflects the evolution of India’s food delivery ecosystem.
Market Trends:
- Price optimization over market share battles
- Festive season premium pricing strategies
- Focus on sustainable business models
- Consumer adaptation to higher delivery costs
For more insights on food delivery trends and stock market analysis, check our business updates and market analysis.
FAQs
When did Zomato implement the new ₹12 platform fee?
The fee hike became effective on September 2, 2025, increasing from ₹10 to ₹12 per order.
How does Zomato’s new fee compare to Swiggy’s charges?
Swiggy charges ₹14 per order in select pin codes, making Zomato slightly cheaper at ₹12.
