Zomato has increased its mandatory platform fee from Rs 10 to Rs 14.90 per order across key metro markets, marking a nearly 50 percent rise. The revision is part of a series of incremental adjustments aimed at improving the company’s take rate and overall profitability.
The platform fee is applied to all orders, including those placed by Zomato Gold members, making it a consistent revenue stream for the company. Industry analysts note that with millions of daily transactions, even a small increase per order can significantly impact quarterly earnings.
The move has drawn reactions from consumers, with many highlighting rising costs on food delivery platforms. Users point out that platform fees, delivery charges, and GST together can add Rs 60–Rs 100 to a single order, contributing to what is being described as delivery fatigue.
The increase reflects a broader effort to manage rising operational and last-mile delivery costs. Market observers view this as an outcome of the limited competition structure in the sector, allowing platforms to adjust pricing strategies to protect margins.
Despite offering free delivery benefits, Zomato continues to apply the platform fee across all orders, ensuring steady revenue even from frequent users within its subscription base.
In contrast, Magicpin has stated that it will not introduce similar charges. The company is positioning itself around a zero platform fee model for orders placed through its app and the Open Network for Digital Commerce.
Deepinder Goyal, Founder & CEO, Zomato, has previously defended such charges, stating they are "essential for the long-term sustainability of the delivery ecosystem," while Magicpin’s leadership has said that "transparency in pricing is key to retaining the next 100 million digital shoppers.”
The development highlights evolving monetisation strategies in India’s food delivery segment, as platforms balance user acquisition, retention, and profitability amid increasing cost pressures.
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