India’s leading food delivery and quick-commerce giant Zomato has once again raised its platform fee, this time by ₹2, taking the charge from ₹10 to ₹12 per order.
The 20% hike, announced by its parent company Eternal Ltd on Tuesday, may seem modest, but industry experts estimate it could add a staggering ₹15 crore to Zomato’s monthly revenue, translating to an annual windfall of ₹180–200 crore. With the company processing approximately 25 lakh orders daily, this small tweak is set to significantly bolster its bottom line, even as it sparks discontent among users already frustrated by shrinking discounts.
A Small Hike, A Big Impact
While a ₹2 increase per order might appear trivial to the average customer, its cumulative effect is anything but. Zomato’s massive order volume — around 2.3–2.5 million daily orders — means the additional fee could generate up to ₹3 crore in daily revenue. Annually, this translates to a potential ₹180–200 crore boost, a strategic move that underscores Zomato’s focus on profitability amid aggressive investments in its quick-commerce arm, Blinkit, and other ventures.
The platform fee, first introduced on August 2, 2023, at ₹2, has seen multiple revisions over the past two years. It rose to ₹3 by late 2023, climbed to ₹4 in January 2024, and briefly spiked to ₹9 during the festive season of December 2023. By October 2024, it was stabilised at ₹10 before the latest hike to ₹12. Each increment has been carefully calibrated to balance revenue growth with customer retention, but the latest move has drawn sharp criticism from users on social media.
User Backlash Amid Rising Costs
The fee hike has not gone unnoticed, with customers expressing frustration over what they perceive as a relentless squeeze on their wallets. Social media platforms are abuzz with complaints, with many pointing out that Zomato has been scaling back discounts and promotional offers while steadily increasing its platform fee. “First they cut discounts, now they’re hiking fees again. Soon, the platform fee will cost more than the food itself!” one user posted on X. Another remarked, “Zomato thinks consumers are either foolish or they just don’t care anymore.”
The backlash comes at a time when Zomato’s financial performance presents a mixed picture. In the June 2025 quarter, Eternal Ltd reported a sharp 90% year-on-year decline in consolidated net profit, dropping to ₹25 crore from ₹253 crore the previous year, largely due to heavy investments in Blinkit and its events business. However, revenue soared by 70.4% to ₹7,167 crore, driven by Blinkit’s rapid expansion and a 24% rise in food delivery gross order value. The platform fee, which contributed ₹83 crore to Zomato’s revenue in FY24, remains a critical driver of its margins.
A Strategic Game Plan
Zomato’s decision to raise the platform fee aligns with its broader strategy to optimise profitability during the festive season, when order volumes typically surge. The company’s rival, Swiggy, followed suit last month, increasing its fee to ₹14 in select cities, indicating a broader industry trend of leveraging platform fees to offset operational costs. Both companies, which introduced the fee in 2023, have incrementally raised it to capitalise on their massive user bases.
Analysts see the hike as a calculated move to strengthen Zomato’s financial health without significantly impacting order volumes. “At 2.5 million orders a day, even a ₹2 increase generates substantial revenue,” said a market analyst. “It’s a low-risk strategy, as most customers are unlikely to abandon the platform over such a small increment.” However, the growing discontent among users suggests that Zomato must tread carefully to maintain customer loyalty.
What Lies Ahead?
As Zomato navigates the delicate balance between profitability and customer satisfaction, the platform fee hike is likely to be a litmus test for its pricing strategy. With Blinkit’s net order value surpassing its food delivery business for the first time in the June quarter, Eternal Ltd is doubling down on its quick-commerce and dining-out ventures. The additional revenue from the fee hike could fuel further expansion, but it risks alienating a price-sensitive customer base.
Apparently, Zomato’s game plan is clear: small fee hikes with big financial rewards. Whether this strategy will solidify its dominance or invite stronger competition from players like Swiggy and newcomer Ownly remains to be seen.