Zomato Raises Platform Fee by 20% to ₹12 Per Order

Zomato has increased its platform fee from ₹10 to ₹12 per order — a 20% jump that took effect immediately across all Indian cities. The move comes ahead of the festive season, when food delivery volumes typically surge, and is aimed at strengthening profitability at a time when promotional and operating costs are rising.

The market welcomed the decision. Shares of Eternal Ltd., Zomato’s parent company, gained nearly 2% to ₹329 on the BSE in early trading, reflecting investor confidence that the higher fee could meaningfully improve unit economics.

From a financial perspective, the impact could be significant. With an estimated 2.5 million orders per day, the platform could generate around ₹3 crore in daily fee revenue, up from roughly ₹2.5 crore earlier. Over a quarter, this could translate into an additional ₹135–150 crore in topline contribution, offering some cushion to Zomato’s thin margins.

Analysts say the timing of the hike is deliberate. Rolling it out ahead of peak festive demand makes it less likely to face consumer resistance. Historically, Zomato and rival Swiggy have avoided fee hikes during off-peak periods to maintain order frequency. This adjustment also shows Zomato’s increasing focus on profitability over pure growth, a theme that has resonated with investors after the company’s consistent improvement in EBITDA over the last few quarters.

The move could also shift competitive dynamics. Swiggy may be forced to follow suit to protect its own margins, or risk losing pricing leverage if it keeps fees lower. The industry is watching closely to see if this hike will stick, especially given that smaller cities are more price-sensitive compared to metros.

Overall, this step signals Zomato’s commitment to building a sustainable business model. By using the festive period to test higher pricing, the company could set a new benchmark for platform fees going forward, improving its long-term cash flows and supporting reinvestment into logistics, cloud kitchens, and technology infrastructure.