Startup Originals Team
The latest platform fee hike is a strategic move by Zomato to boost per-order profitability at a time when order volumes are expected to surge. While a ₹2 jump may seem modest to individual users, it has significant implications for Zomato’s overall financial health due to the high volume of daily orders placed during this busy period.
Details of the Platform Fee Increase:
- Zomato’s platform fee, first introduced in April 2023 at just ₹2 per order, has gradually increased over two years, reaching ₹12 in September 2025.
- The fee is charged in addition to delivery charges, GST, and restaurant costs, making platform fees a major revenue lever for the company.
- Swiggy, Zomato’s main rival, raised its own platform fee by ₹2 to ₹14 per order in select regions during the festive rush.
Impact on Revenue and Business Performance:
- With Zomato handling 2.3 to 2.5 million orders per day, the new ₹12 platform fee will generate approximately ₹3 crore in daily revenue, up from around ₹2.5 crore per day at ₹10 per order.
- This seemingly small ₹2 hike could translate to a quarterly revenue boost of up to ₹45 crore for Zomato.
- Despite a significant 90% drop in profit after tax for Q1 FY26 (down to ₹25 crore), Zomato’s revenue from operations jumped 70% year-over-year to ₹7,167 crore, as the company pushes monetisation during seasonal demand and continues to invest in its Blinkit quick commerce business.
Other Monetisation Strategies:
- Zomato has tested rain surcharges during bad weather and launched a ₹50 “VIP Mode” in select cities, offering priority delivery and exclusive services for a premium fee.
- The platform has also added “long distance fees” on restaurant orders delivered more than four kilometers, a move that has faced pushback from smaller eateries.
- These additional measures are designed to capture more value from each transaction and offset increased operating costs.
Festive Season Strategies and Future Outlook:
- The current fee hike is seen as a festive-season move and may be rolled back once demand eases.
- Both Zomato and Swiggy have periodically raised platform fees during periods of peak demand and sometimes retained higher charges long-term if volumes remained strong.
Zomato’s latest fee increase reflects changing industry dynamics, with both leading platforms focused on improving margins and sustaining growth even as profits fluctuate. For users, every order now comes with a higher fee, but for Zomato, that translates to tens of crores in additional revenue—even from a small hike.
