Zomato increases platform fee to ₹10 amid festive season rush

Zomato increases platform fee to ₹10 amid festive season rush
23 Oct 2024

Gurugram-based food delivery giant Zomato has increased its platform fee from ₹6 to ₹10 per order for the festive season.

The company announced the change through a notification on its app.

"This fee helps us pay our bills to keep Zomato running. To maintain services during the festive season, it has increased slightly," said the notification on the Zomato app.

The company had first introduced the platform fee in 2023 at ₹2 per order, gradually increasing it over time.

Zomato's platform fee hike: A strategy to cover operational costs
Fee justification

The platform fee, as Zomato explained, is a charge that allows the company to meet its operational costs and keep the service running.

This fee is separate from other charges like Goods and Services Tax (GST), restaurant charges, and delivery fees.

The recent hike in this fee is specifically targeted at keeping services during the festive season.

Swiggy was the first to introduce platform fee
Market trend

Swiggy, Zomato's Bengaluru-based rival, was the first to introduce a platform fee and has also increased its fee over time to ₹7.

Industry insiders estimate that these platforms handle 2-2.5 million food delivery orders every day.

Any increase in the platform fee can significantly boost the take rates for these companies, improving their revenue streams.