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Analysis · Commerce & Consumer Brands

Zomato increased platform fees by 500-700% in three years

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Zomato logo
Date
Company
Zomato
What it does
food delivery app
Kind
Analysis
Sector
Commerce & Consumer Brands

What they do

Zomato is a food delivery app with 300,000+ restaurants and 600,000+ delivery partners in 800+ cities Platform fees rose from ₹2 in August 2023 to ₹14.9 as…

The details

  • Zomato increased its platform fees from ₹2 in August 2023 to ₹14.9 as of March 2026, a 500-700% increase
  • The surge in fees has caused frustration among users who now pay more for the same food items
  • Even Zomato Gold or Swiggy One subscribers still pay platform fees, packaging charges, and GST
  • Late-night surcharges, surge pricing, and rain fees add to the final bill for users
  • Quick commerce platforms like Blinkit also charge fees, such as a ₹20 'small cart fee' on orders under ₹99

The bigger picture

  • Platform fees have become a significant revenue stream for companies in India's 500 Mn+ digital consumer market
  • A 2025 survey found 50% of users face these fees on most online purchases, and 90% want platforms that eliminate them
  • The Indian e-commerce market is projected to surpass $400 Bn by 2030, making platform fees a growing concern
  • Commissions at the restaurant end are now passed on to users through increased menu prices

About the business

  • Zomato is India's leading food delivery app with 300,000+ restaurants and 600,000+ delivery partners
  • It operates in 800+ cities and has delivered over 3 billion orders
  • The app offers features like Veg Mode, Healthy Collections, Schedule your order, and Gourmet Gift Cards
  • Zomato also has a top savings program called GOLD, offering free delivery and up to 30% extra off at 20,000+ partner restaurants
  • Zomato has expanded beyond food delivery with businesses like Blinkit (grocery delivery) and Hyperpure (supply chain solutions for restaurants)

The deal

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