Zomato Increases Platform Fee to Rs 10 Ahead of Festive Season

Food delivery platform Zomato has confirmed an increase in its platform fee to Rs 10, which is in place across certain cities just ahead of the festive season. The company clarified that this adjustment is part of routine business operations, refuting claims that the fee hike is merely a rumour.

In a regulatory filing, Zomato stated, “At the outset, we would like to state that this is not a rumour, as the source of information mentioned in the article is the Zomato mobile application itself which is public and available for everyone to see and check. We have indeed increased the platform fee yesterday across certain cities. Such changes in our platform fee are a routine business matter and are done from time to time and may vary from city to city."

Zomato first introduced a platform fee in August 2023, charging Rs 2 per order, which was increased to Rs 4 by January 2024. The latest hike to Rs 10 applies to all users, including Zomato Gold members, and is in addition to other charges such as GST, delivery fees, and restaurant service fees.

In response, competitor Swiggy also increased its platform fee to Rs 10 per order. However, unlike Zomato's app, which labels the fee as temporary due to the festive season rush, Swiggy’s fee hike appears to be permanent, as no notification has been issued about its duration.

This fee increase follows Zomato’s strong Q2 performance, where the company reported a profit surge of 388.9 percent to Rs 176 crore. Revenue from operations grew by 68.5 percent, reaching Rs 4,799 crore, compared to Rs 2,848 crore during the same period in FY24.

As detailed in its annual report from August, Zomato collected Rs 83 crore in platform fees by March. The platform fee has been a key contributor to Zomato's 27 percent year-on-year revenue growth, with total revenue reaching Rs 7,792 crore for FY24.

Zomato's decision to increase the platform fee reflects broader efforts in the Indian retail and hospitality sectors to manage operational costs while capitalizing on the seasonal demand surge.