Food delivery platforms are ringing in the festive season with higher platform fees. Deepinder Goyal-led Zomato has raised its fee to ₹12 per order from ₹10, while rival Swiggy has bumped it up to ₹15 (inclusive of GST) in select pin codes. The timing is no coincidence. Both players are looking to capitalise on the expected surge in orders during the upcoming festival months, a period when India’s appetite for convenience is at its peak.
From ₹2 to Double Digits: The Journey of Platform Fees
Platform fees are still a relatively new addition to the food delivery landscape. Introduced in 2023 at a modest ₹2, they have since climbed steadily. Zomato’s charge has now increased sixfold, reflecting a recurring strategy—raise fees just before a busy season and then retain the higher rate afterward. What began as an experimental charge has now become a reliable revenue stream, silently padding margins while consumers grow accustomed to the extra cost.
Why These Increases Matter
According to Karan Taurani, executive vice president at Elara Capital, every single rupee added to the platform fee improves Zomato’s take rates by about 22 basis points. For Zomato, which is chasing the target of a 5% adjusted EBITDA margin, this fee is more than just a small levy—it’s a fast-track tool for profitability. With 2.3–2.5 million daily orders, the ₹12 fee translates to nearly ₹3 crore in additional revenue every day. Small changes, big impact.
A Tale of Two Giants
While Zomato’s food delivery growth has slowed, its overall performance still shows strength. The company reported a 16% year-on-year increase in gross order value (GOV) to ₹10,769 crore in the April–June quarter, though this was weaker than the 20%+ growth seen previously. Parent firm Eternal, however, saw consolidated revenue jump 70% year-on-year to ₹7,167 crore. Profits, on the other hand, slipped dramatically—net profit dropped to ₹25 crore from ₹253 crore a year ago, thanks to heavy investments and rising costs.
Swiggy, meanwhile, is facing its own challenges. In the June quarter, it reported revenue of ₹4,961 crore (up 54% year-on-year) but also posted a loss of ₹1,197 crore, largely due to aggressive spending on its quick commerce arm Instamart. While Swiggy’s fee is slightly higher than Zomato’s, the company’s margin pressures remain significant.
Blinkit Steals the Show
Perhaps the most telling development is not in food delivery but in quick commerce. Zomato-owned Blinkit, the grocery and essentials delivery service, has overtaken food delivery in net order value for the first time. In the June quarter, Blinkit clocked ₹9,203 crore in net order value—a staggering 127% jump year-on-year and 25% sequentially. For Zomato, this pivot signals that the future may lie less in biryanis and burgers and more in instant groceries.
Quick commerce has also become the battleground where both Zomato and Swiggy are fighting hardest. With growth in traditional food delivery flattening, platforms are betting that consumers will increasingly turn to 10–20 minute deliveries for daily essentials. It’s an expensive bet, but one that could redefine the industry.
What It Means for Consumers
For customers, the rising platform fee is a subtle but noticeable pinch. While ₹12 may not sound like much on a single order, frequent users end up paying significantly more over time. The psychology is simple—consumers may grumble but are unlikely to abandon the platforms altogether, especially during festive times when convenience trumps cost.
The Road Ahead
Zomato and Swiggy’s platform fee hikes are more than just seasonal tactics—they are signals of a broader shift. Food delivery, once the darling of India’s digital economy, is maturing and facing slower growth. Quick commerce, meanwhile, is emerging as the new growth engine. The festive season may temporarily mask these transitions, but in the long run, both companies know their futures depend on how well they navigate the quick commerce battleground.
