Zomato has increased its platform fee from ₹10 to ₹12 per order, excluding GST, marking a 20% rise just in time for the festive season—a period when demand for food delivery surges substantially.
Why the Increase?
This move is part of Zomato’s continued efforts to strengthen margins amid rising operational costs and revenues under pressure. Rivals like Swiggy have mirrored the strategy, with platform fees reaching ₹14 per order in some areas.
Karan Taurani of Elara Capital explained that each ₹1 increase in the platform fee translates to a 22 basis point improvement in Zomato’s take rate, a key metric for profitability.
Impact on Revenue
With daily order volumes ranging from 2.3 to 2.5 million, the new ₹12 fee could yield around ₹3 crore in daily revenue, up from approximately ₹2.5 crore at the earlier rate. This adds up to an incremental ₹45 crore per quarter.
Broader Context
- Rapid Fee Escalation: Since its introduction in 2023 at ₹2 per order, the fee has risen sixfold, reflecting aggressive monetization trends.The Economic Times
- Muted Growth: Zomato’s gross order value (GOV) growth slowed to 16% YoY in Q1 FY26, down from earlier levels exceeding 20%
- Diversification in Monetization: The company is experimenting with multiple revenue streams, including rain surcharges, ‘VIP Mode’ in select locations, and long-distance fees for restaurant partners.
Summary Table
| Metric | Previous Fee | New Fee | Impact |
|---|---|---|---|
| Platform Fee | ₹10 | ₹12 | +20% increase |
| Daily Revenue (est.) | ~₹2.5 crore | ~₹3 crore | +₹0.5 crore/day |
| Potential Quarterly Gain | — | — | ~₹45 crore extra |
Why It Matters
For consumers, the hike is modest per order but significant in aggregate. For Zomato, it’s a strategic move to reclaim profitability and hedge against slower growth. As the festive season unfolds and competition intensifies—with new players like Rapido’s Ownly entering the market—these micro-levers become crucial for sustained financial health.
