Zomato Raises Platform Fee to Offset Rising Operational Expenses

Key Highlights

• ₹14.90: New pre-tax platform fee for Zomato, up from ₹12.50
• ₹2.40: Increase in platform fee to offset rising operational expenses
• September 2025: Last time Zomato revised its platform fee

Rising Operational Expenses

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Zomato, a leading food delivery platform, has increased its platform fee by ₹2.40 to ₹14.90 per order, effective immediately. This move aims to offset the rising operational expenses, particularly driven by the surge in crude oil prices due to the ongoing West Asia conflict. The increase marks Zomato's first fee revision since September 2025.

Competitor Landscape

In contrast, rival Swiggy maintains a platform fee of ₹14.99, which includes GST. Magicpin, the sector's third-largest player, has decided to hold its fee steady at ₹14.20 to keep its service accessible during this period of rising costs. Anshoo Sharma, CEO & Founder of magicpin, stated that the company has consciously decided not to increase its platform fee to support restaurant partners and keep food delivery accessible for customers.

Industry Performance

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India's primary food delivery competitors, including Swiggy, magicpin, and Zomato, witnessed a resurgence in growth during the October-December quarter, reversing a previous period of stagnation. The turnaround was propelled by high order volumes during the festive season, an expanding user base, and a strategic focus on budget-friendly offerings. Industry leaders anticipate that continued investments in product innovation and value-based marketing will sustain this upward trajectory in the upcoming quarters.

Gross Order Value

Major metropolitan hubs, including Mumbai, Bengaluru, and Hyderabad, recorded a surge in gross order value exceeding 40%. Anshoo Sharma noted that affordability is a critical driver, with average transaction values between ₹150 and ₹300 encouraging frequent customer engagement.

Swiggy's Q3 FY26 Report

Swiggy's Q3 FY26 report highlighted a 20.5% year-on-year increase in gross order value to ₹8,959 crore, representing the company's most rapid expansion in three years and signalling a robust recovery for the entire digital ecosystem. The acceleration was driven by stronger adoption of new propositions across speed, selection, and affordability.