If you thought ordering food online was only about convenience, think again. Zomato, India’s biggest food delivery platform, has just rolled out a move that’s sparking debates across kitchens and living rooms: a 20% hike in its platform fee, raising it to Rs 12 per order. And while the hike may feel small to the average consumer, the numbers behind it are staggering. With between 2.3 million to 2.5 million daily orders, this new fee could generate over ₹3 crore every single day for Zomato.
Yes, you read that right – one tiny tweak to your bill has the power to turn into a money-printing machine.
A Fee That’s Quietly Exploded Sixfold
The platform fee isn’t new. It quietly appeared in 2023 at a modest Rs 2 per order, framed as a way to support delivery operations. But year after year, season after season, it has crept upward: Rs 2 became Rs 5, Rs 5 became Rs 10, and now we’re at Rs 12. That’s a sixfold jump in just two years, with no signs of slowing down.
And it’s not just Zomato. Rival Swiggy has hiked its own fee to Rs 15 (inclusive of GST) in certain pin codes. Analysts believe the two companies are locked in a silent race to see how much customers are willing to stomach. The strategy is clear: raise fees just before peak seasons, like festivals or cricket tournaments, test resistance, and lock the new price in.
Why This Move Matters
To the average customer, Rs 12 may not feel like a dealbreaker. After all, if you’re already spending Rs 300–400 on dinner, what’s an extra dozen rupees? But zoom out, and the picture changes.
Karan Taurani, EVP at Elara Capital, notes that every single rupee added to Zomato’s platform fee improves take rates by 22 basis points. That may sound like financial jargon, but here’s the translation: it’s a fast-track way to profitability. Zomato has long aimed to achieve 5% adjusted EBITDA margins, and the platform fee is turning out to be their secret weapon.
For Zomato, it’s simple math. Millions of orders multiplied by Rs 12 equals guaranteed revenue – without spending extra on marketing, delivery incentives, or discounts. For investors, it’s music to the ears. For consumers, it’s an unavoidable pinch.
The Bigger Picture: Growth Is Slowing
Behind the fee hike is a sobering reality. Zomato’s gross order value (GOV) rose 16% year-on-year to Rs 10,769 crore in the April–June quarter. Sounds impressive? Maybe, but it’s slower than the 20%+ growth rates seen in earlier quarters.
Parent company Eternal reported consolidated revenue of Rs 7,167 crore, up a whopping 70% year-on-year. But profits told a different story: net profit crashed 90% to Rs 25 crore, down from Rs 253 crore a year earlier. Rising costs and heavy investments are eating into earnings, and that’s exactly why platform fees are becoming such a crucial lever.
Blinkit: The Real Star of the Show
Here’s where the plot twist comes in. While Zomato’s food delivery arm is fighting for margins, its quick commerce arm Blinkit is stealing the spotlight.
Blinkit’s net order value surged 127% year-on-year to Rs 9,203 crore, overtaking Zomato’s core food delivery business for the first time. Sequentially, it grew 25% – a blistering pace compared to food delivery’s slowdown.
This isn’t just a side business anymore; Blinkit is now the crown jewel. From groceries to electronics, Blinkit is becoming India’s answer to the instant-delivery craze. And as festive shopping season kicks in, that gap could widen even further.
Swiggy: Struggling in the Shadows
Meanwhile, Swiggy is finding the going much tougher. Despite revenue climbing 54% to Rs 4,961 crore, the company’s losses widened to Rs 1,197 crore in the June quarter. The culprit? Heavy spending on Instamart, its quick commerce arm.
Both Zomato and Swiggy know the future lies in instant delivery, but Swiggy’s path is proving far costlier. And with Zomato’s Blinkit gaining momentum, the gap between the two rivals could grow into a chasm.
What It Means for You
For customers, the message is clear: food delivery is going to keep getting more expensive. Discounts are shrinking, delivery fees are rising, and now platform fees are quietly snowballing. You can grumble, but unless you’re willing to delete the apps, you’ll end up paying.
For Zomato, it’s about survival and domination. Platform fees may seem like pocket change, but they’re a financial masterstroke that ensures steady, high-margin revenue. Pair that with Blinkit’s meteoric rise, and the company is setting itself up as a long-term winner.
For Swiggy, it’s crunch time. The company must either stem its losses in Instamart or risk falling hopelessly behind.
And for investors? This is exactly the kind of disciplined revenue play that makes Zomato a darling of the markets – even if it annoys consumers.
The Bottom Line
The Rs 12 platform fee may feel like a small irritation today, but it represents something much bigger: the way India’s food-tech giants are reshaping their business models. Delivery apps are no longer burning cash to win you over. They’re charging you, unapologetically, because they know they can.
The question isn’t whether you’ll pay Rs 12 today. It’s how much you’ll be paying in another year. Rs 15? Rs 20? At this rate, nothing’s off the table.
Until then, every bite of your biryani or every sip of your late-night chai is helping Zomato inch closer to billions in profits – one platform fee at a time.
