Zomato has raised its platform fee on food delivery orders to ₹12 from ₹10, as demand is set to surge during the festive season. The fee is charged per order and does not include goods and services tax (GST).

The hike comes shortly after rival Swiggy raised its platform fee to ₹14 (inclusive of GST) in select pin codes, citing growing order volumes. Both Zomato and Swiggy had introduced the platform fee in 2023 and have steadily increased it over time.

The move reflects growing financial pressures on the two food delivery giants as they continue to invest heavily in quick commerce, even as growth in their core food delivery business has moderated. For the April–June quarter, Zomato’s parent company reported a 16% year-on-year growth in gross order value at ₹10,769 crore, slower than the over 20% growth it had recorded until recent quarters.

Despite a 70% jump in revenue, Zomato posted a sharp 90% decline in consolidated net profit at ₹25 crore compared to ₹253 crore a year earlier. Swiggy, meanwhile, saw its quarterly losses widen to ₹1,197 crore, largely due to investments in its quick commerce vertical Instamart, even as its operating revenue rose 54% to ₹4,961 crore.

Industry experts believe platform fee hikes will continue to support profitability. “The strategy of raising platform fees ahead of the festive season and retaining the higher rate later has been in place since last year, when the fee was increased from ₹6 to ₹10. The platform fee has increased six times since its introduction on Zomato. For every rupee of platform fee added, Zomato’s take rates improve by 22 basis points,” said Karan Taurani, Executive Vice President at Elara Capital.

Meanwhile, new competition may test the duopoly of Zomato and Swiggy. Rapido has recently launched its food delivery service, Ownly, in Bengaluru, positioning itself as a lower-cost alternative with commissions ranging from 8–15% for restaurants, compared to the 16–30% charged by Zomato and Swiggy. Currently, Ownly is operational in Koramangala, HSR Layout, and BTM Layout.

With platform fees rising and competition heating up, India’s food delivery landscape is poised for a dynamic shift in the months ahead.

The Indian government has announced a significant reform in the Goods and Services Tax (GST) structure, introducing two primary slabs of 5% and 18%. The decision was taken at the 56th GST Council meeting and will take effect from 22 September 2025, coinciding with the beginning of Navaratri.

Under the revised system, essential food items such as bread and paneer will be exempt from GST, while agricultural and food products will attract only 5%. This move is expected to reduce costs for consumers and the food service industry alike. Sin goods, including gutka, tobacco products, and carbonated drinks, will face a higher rate of 40% GST.

For the hospitality industry, the changes bring notable relief. GST taxation on rooms in hotels are also comes under the new GST slabs.

Hotel rooms with tariffs of less than or equal to Rs 7500 per day will be taxed at 5% without input tax credit (ITC) from 12% with inputs tax credit (ITC), as per recommendations made by the 56th GST Council. This move will enhance both the hospitality and tourism industry, with hotel stays now becoming more affordable.

This system continues to simplify hotel accommodation taxation, while the reduction of GST on essential goods and appliances used in hotels, such as air conditioners and televisions, paves the way for operational cost savings. Additionally, milk products and butter now fall under 0% from 5%, that means no tax for these products, creating the potential for reduced prices of dairy-based dishes and desserts like ice creams and pastries in hotel restaurants.

Mr. Varadharajan, Chartered Accountant and Hotel Tax Consultant, welcomed the move, stating that the revised GST will help bring down costs for both hotel operators and guests, making hospitality more accessible.

The GST 2.0 reform signals the government’s intent to balance affordability with economic growth, offering a direct benefit to hotels, restaurants, and consumers. With its timing aligned with the festive season, the initiative is expected to boost travel, dining, and overall demand in the hospitality sector.

Ospree Duty Free has brought the joy of Kerala’s most cherished festival to the airport with its ‘Osam Onam’ celebrations at Thiruvananthapuram airport. Running through the festive season, the campaign aims to give travellers a true taste of Onam while turning their shopping journey into something special.

The store has been decked up with vibrant Kerala-inspired décor, highlighted by a striking installation of the legendary King Mahabali. Passengers are welcomed by staff dressed in traditional attire, setting the mood for a warm and authentic festive experience. A special photo corner featuring Mahabali allows shoppers to capture the spirit of Onam and carry home memories beyond their purchases.

The ‘Osam Onam’ celebrations extend beyond décor and experiences. Shoppers can explore a wide selection of categories from fragrances and cosmetics to food, Indian gourmet, electronics, sunglasses, and watches. Along with seasonal shopping, the campaign is packed with rewards, including the chance to win exciting prizes like an iPhone 15 Pro Max, one-gram gold coins, and even a Jawa Bike, all linked to threshold-based shopping offers.

Sharing more about the initiative, an Ospree Duty Free spokesperson said, “At Ospree, we focus on curating thoughtful, value-led selections that not only enhance the traveller's journey but also bring added joy to regional celebrations. With the Osam Onam campaign, we wanted to go a step further by celebrating Kerala's most important festival in a way that feels both festive and rewarding for our shoppers. From traditional touches to exclusive prizes, the campaign is designed to create memorable experiences for everyone passing through our Thiruvananthapuram store”.

Ospree Duty Free, formerly known as Mumbai Duty Free, is the flagship brand of Mumbai Travel Retail Private Limited (MTRPL), India’s leading duty-free retail operator. With a presence in Mumbai, Ahmedabad, Amritsar, Jaipur, Lucknow, Mangaluru, and Thiruvananthapuram, Ospree Duty Free continues to be a trusted destination for travellers seeking luxury shopping and exclusive offers.