NED74/1 (16.4/50 ov, target 183)
OMA182
MS-W42/3 (6.1/20 ov, target 125)
PS-W124/9
SAS
FIO
ATA
PAR
LOR
BRE
NEW
EVE
DEP
OSA
WI-A
LIONS
Galatasaray
Stuttgart
Shakhtar
Sporting
Athletic2
Real Sociedad1
Juventus2
Napoli0
Marseille2
Toulouse0
Elche0
Valencia1
KAY180/6
KAG145/5 (17/20 ov, target 181)
NZ-A424
IND-A346 & 32/0 (11 ov)
QLD280
VIC307 & 136/6 (66 ov)
SYL218 & 89/2 (38 ov)
CHATT210
MYMS108 & 57/2 (14 ov) (f/o)
KHU288
DHA
BAR
RAN122/3 (39 ov)
RAJ231
ASSAM135
KNTKA176/2 (33 ov)
MEGHA
NAGA244/8 (67 ov)
TPURA219/7 (74.3 ov)
SAU
CHR
SPR
TOK
MOW
BIK
JAB
LUL
POA
DOLPH
WPR
CD
AUCK
OTAGO
CANT
AFG81/3 (8.1/20 ov, target 80)
ZIM79
NAM131/5 (21.2/50 ov, target 130)
IRE129
NZ195/3 (18/20 ov, target 192)
IND191/8
SS-W196/8
HH-W109 (17.4/20 ov, target 197)
ST-W180/4 (16.4/20 ov, target 179)
BH-W178/5
Atlético
Bayern
Lecce1
Genoa2
Liverpool0
Arsenal1
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.
Table of Contents
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.
