Food delivery just got more expensive! Zomato has increased its platform fee from ₹10 to ₹12 per order, marking a 20% hike just ahead of the festive season rush. This latest fee increase has sparked widespread customer backlash, with many users expressing frustration over the rising costs that sometimes exceed the actual food prices, especially for smaller orders.
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Zomato Complete Platform Fee Timeline & Current Charges
The platform fee evolution tells the story of food delivery companies’ journey toward profitability. Zomato first introduced the fee at ₹2 in August 2023 as part of a strategy to improve margins and move toward profitability, and has been steadily increasing it since.
Platform Fee Evolution & Market Comparison
| Platform | Current Fee | Previous Fee | Increase % | Implementation Date |
|---|---|---|---|---|
| Zomato | ₹12 | ₹10 | 20% | September 2, 2025 |
| Swiggy | ₹15 | ₹12 | 25% | September 2025 |
| Zomato (Historical) | ₹10 | ₹7 | 43% | October 2024 |
| Original Zomato Fee | ₹2 | N/A | Base | August 2023 |
Deepinder Goyal-led Zomato has raised its fee to ₹12 per order from ₹10, while rival Swiggy has bumped it up to ₹15 (inclusive of GST) in select pin codes, making both platforms significantly more expensive for regular users.
Why the Timing Matters: Festive Season Strategy
The timing of this fee hike is particularly controversial. The 20% increase comes just before the festive season when demand is expected to skyrocket, potentially maximizing revenue during peak ordering periods.
Strategic Timing Analysis:
- Peak Demand Period: Festive season traditionally sees 30-40% higher order volumes
- Price Sensitivity: Customers more likely to accept higher costs during celebrations
- Competitor Coordination: Both Zomato and Swiggy implementing similar increases simultaneously
- Revenue Maximization: Capitalizing on seasonal shopping and dining trends
This coordinated approach suggests both platforms are prioritizing profitability over customer satisfaction during high-demand periods.
Customer Impact: When Fees Exceed Food Costs
The most controversial aspect of this hike is how platform fees now rival or exceed actual food costs for smaller orders. A simple ₹50 snack now carries an additional ₹12 platform fee plus delivery charges, GST, and potential surge pricing.
Real-World Impact Examples:
- Small Orders: ₹60 food item + ₹12 platform fee + ₹30 delivery = ₹102 total (70% markup)
- Regular Users: Monthly cost increase of ₹60-100 for frequent orderers
- Budget Constraints: Low-income users may reduce order frequency
- Alternative Seeking: Push toward direct restaurant ordering or pickup
This fee increase will create additional burden on customers’ pockets, and for frequent orderers, it could result in significant annual expense increases.
Revenue Implications for Zomato
The financial impact of this fee hike is substantial. With platforms processing around 2 million orders daily, this fee increase will significantly boost revenue. Historical data shows even a ₹1 increase could add ₹65 crore to Zomato’s annual revenue based on 647 million orders in FY23.
Revenue Projections:
- Daily Additional Revenue: ₹4 crore (2 million orders × ₹2 increase)
- Annual Impact: Approximately ₹1,460 crore additional revenue
- Profitability Path: Direct contribution to bottom-line improvement
- Market Position: Funding for competitive advantages and expansion
Customer Response & Market Reaction
Food lovers are outraged as platform fees make food delivery increasingly expensive, with social media flooded with complaints about the timing and magnitude of increases. Many users are reconsidering their delivery habits or exploring alternatives.
Customer Adaptation Strategies:
- Bulk Ordering: Larger orders to offset fixed fees
- Direct Contact: Calling restaurants directly for delivery
- Pickup Options: Choosing self-pickup to avoid fees entirely
- Competitor Shopping: Comparing total costs across platforms
Industry Context: The Profitability Push
Both Zomato and Swiggy are under pressure to achieve sustainable profitability after years of heavy losses. Platform fees represent pure profit since they don’t involve food costs, delivery expenses, or restaurant commissions.
Market Dynamics:
- Investor Pressure: Demands for profitability over growth
- Competitive Parity: Both platforms raising fees simultaneously
- Unit Economics: Improving per-order margins through additional charges
- Market Maturity: Moving from acquisition to monetization phase
What This Means for the Future
This fee structure likely represents the new normal for food delivery. As platforms establish market dominance, convenience fees become accepted costs for urban consumers, similar to booking fees in travel or service charges in restaurants.
Long-term Implications:
- Regular Increases: Expect annual fee adjustments
- Tiered Pricing: Potential premium/basic service levels
- Subscription Models: Monthly plans to offset per-order fees
- Market Consolidation: Smaller platforms may struggle to compete
Alternatives and Customer Options
Despite the controversy, customers still have options to minimize impact. Restaurant direct delivery, pickup orders, and careful platform comparison can help reduce overall costs.
Stay updated on food delivery trends and cost-saving tips with our comprehensive guides. For official Zomato policies and updates, visit Zomato’s Help Center.
Frequently Asked Questions
Q: Can I avoid paying the Zomato platform fee, and are there any exemptions or workarounds?
A: Unfortunately, the ₹12 platform fee is mandatory on all Zomato food orders with no official exemptions or workarounds. However, you can minimize the impact by placing larger orders to spread the fee across more items, using restaurant direct delivery services when available, or opting for pickup orders which don’t carry platform fees. Some users also compare total costs between Zomato and other platforms, though most major competitors have similar fee structures. Subscription services like Zomato Pro may offer benefits that partially offset these costs for frequent users.
Q: How does Zomato’s new ₹12 platform fee compare internationally, and is this pricing justified?
A: Internationally, platform fees vary significantly – US platforms like DoorDash charge $2-5 (₹165-415), while European services range from €1-3 (₹90-270). India’s ₹12 fee is relatively lower in absolute terms but represents a higher percentage of average order values due to different economic conditions. The justification comes from operational costs including technology infrastructure, customer support, and payment processing. However, critics argue that with India’s high order volumes and lower operational costs, the fee percentage seems disproportionate compared to global markets, especially given local purchasing power.
