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.