Restaurant India News: Food Delivery Users Brace for Higher Bills as Major Platforms Raise Fees

Ahead of the festive season, major food delivery platforms in India — Zomato, Swiggy, and magicpin — have raised their platform fees, increasing costs for millions of consumers. These hikes are expected to be further impacted by the 18 percent Goods and Services Tax (GST) that will be applied to delivery charges starting from September 22.

Swiggy has increased its platform fee to Rs 15, inclusive of GST, in select markets. Zomato has raised its platform fee to Rs 12.50, excluding GST, while magicpin has set its platform fee at Rs 10 per order, aligning with broader industry trends. These changes are likely to make food delivery more expensive for consumers.

Industry estimates suggest that the new 18 percent GST on delivery charges will add approximately Rs 2 per order for Zomato users and around Rs 2.6 for Swiggy customers. Queries sent by PTI to both companies regarding the increase did not receive responses.

However, A MagicPin spokesperson stated that “Recent GST changes do not impact our cost structure. Thus, for consumers, there would be no impact of the GST increase. Our platform fees will remain at Rs 10 per order, which is also the lowest among major food delivery companies.”

In recent years, platform fees have become an important source of revenue for food delivery services. The simultaneous fee increases across leading platforms underscore the trend of rising operational costs in India’s food delivery sector. This development has raised concerns over whether affordability and convenience can remain accessible to the broader customer base.

The move reflects growing cost pressures within the industry and highlights the challenges food delivery platforms face as they expand into newer markets while managing logistics, taxes, and customer expectations. For the hospitality industry, this trend signals a shift in consumer spending patterns and a need to adapt pricing strategies to maintain demand while balancing service quality and affordability.