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Food delivery giant Zomato has announced an increase in its platform fee, raising it by 20 % to ₹12 per order. The new fee structure, which came into effect this week, applies to all food delivery orders placed through the Zomato app.
The platform fee, introduced in 2023 at a modest ₹2, has
been gradually increased over the years. Until now, users were paying ₹10 per
order, but the latest hike makes it ₹12, adding to the overall cost of online
food delivery.
According to the company, the decision to increase fees was
driven by rising operational costs, investments in technology, and the need to
improve delivery infrastructure. A Zomato spokesperson stated, “The nominal
increase in platform fees allows us to ensure reliable deliveries, enhance
customer experience, and support our partners in the ecosystem.”
While the fee hike may appear small in absolute terms, it
could significantly impact frequent users. For instance, a customer placing 20
orders a month will now pay ₹240 in platform fees compared to ₹200 earlier.
The move has received mixed reactions. Many customers
expressed frustration on social media, arguing that frequent price hikes make
online food delivery less affordable. Some users pointed out that, along with
delivery charges, restaurant taxes, and surge pricing, the overall bill has
become noticeably higher.
On the other hand, industry experts suggest that Zomato’s
decision reflects the broader challenges in the food delivery business model.
Rising fuel costs, delivery partner incentives, and the push for profitability
have forced platforms to find new revenue streams. Competitor Swiggy also
charges a platform fee, and analysts expect it may follow with a similar hike
soon.
Despite criticism, Zomato remains one of the leading players
in India’s food delivery market. The company has been diversifying its
services, expanding into quick-commerce through Blinkit, and investing in
AI-driven technology for better delivery management. By increasing the platform
fee, Zomato is expected to generate additional revenue that could strengthen
its financial performance in the coming quarters.
For customers, the fee hike serves as a reminder of the
evolving dynamics of the online food delivery industry. What was once
considered a luxury has become a daily habit for many urban households.
However, with rising costs, some users may reconsider the frequency of their
orders or look for discounts and subscription services like Zomato Gold to
offset expenses.
As India’s food-tech sector continues to expand, companies
like Zomato face the challenge of balancing affordability with profitability.
The latest fee hike may be unpopular among customers, but for Zomato, it
represents another step toward sustaining its business in a highly competitive
market.
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