Zomato Introduces ‘Long Distance Service Fee’ on Restaurants for Deliveries beyond 4 km

Zomato has started charging “long distance service fee” for food orders that are delivered more than 4 km away. Customers will now pay ₹15 for delivery between 4 and 6 km if the order value exceeds ₹150. Orders over 6 kilometers will incur a cost ranging from ₹25 to ₹35, depending on the city. The customer must pay this fee regardless of the amount they spend.
 
Zomato assured its restaurant partners that the overall service fees, including this new distance charge, would not exceed 30%. However, some dining establishments claim that their overall commission fees may reach 45 percent. 

“There are changes to the commission terms every few months and it is frustrating to do business this way without any clarity on commission structures. Several restaurants are in touch with each other to formally raise a complaint with Zomato over this and are contemplating going off the platform for a day in protest,” one restaurateur told media.

Alongside a new delivery fee, Zomato has asked some restaurant partners to sign updated agreements reflecting the parent company's rebranding to “Eternal.” According to company insiders, the fee is part of a broader strategy, which also includes a new rating system those factors in delivery distance—a feature introduced last year that has already drawn criticism from some restaurateurs.

Previously, free delivery was capped at 4–5 km, but this was extended to 15 km post-pandemic as many restaurants shuttered. The National Restaurant Association of India (NRAI) has reached out to Zomato to raise concerns and plans to discuss the matter in detail later this week.
 
“This decision has to be seen in conjunction with the distance-based ratings system. Data shows that user experience deteriorates as delivery distance increases,” a Zomato executive told media.

These changes come amid a slowdown in the food delivery sector. Both Zomato and rival Swiggy have reported year-on-year growth below 20% over the last two quarters. Despite this, food delivery remains Zomato’s core business, with ₹9,778 crore in gross order value for the March quarter—a 16% increase from last year, though slightly down from the previous quarter. The company also recently shut down its 10-minute delivery services, Quick and Every day.