Food Delivery: Zomato’s Platform Fee Increase for Better Margins

Food delivery leader Zomato has raised its platform fee from Rs 12.5 to Rs 14.9 per order, marking a growth of 19.2% as the company prioritises better profit margins. This change comes at a time when growth in the food delivery market is predicted to decelerate compared to previous periods.

The platform fee is a fixed cost added to every order, in addition to delivery charges and taxes. While the Rs 2.4 increment may seem minimal to consumers, it could represent a significant enhancement in revenue for the company, considering the scale of its operations. This adjustment is part of a series of fee increases that have occurred over recent years. Previously, Zomato escalated the platform fee from Rs 10 to Rs 12 in September 2025, before raising it to Rs 12.5.

With this latest adjustment to Rs 14.9, Zomato continues to progressively expand this revenue source. By way of context, rival Swiggy had raised its platform fees to Rs 15 in September of last year.

Zomato’s Fee Strategy

Zomato first implemented the platform fee in 2023, starting at a nominal Rs 2 per order. Since then, it has become a crucial tool for enhancing unit economics, aiding the Gurugram-based company in managing increasing delivery costs, investments in logistics, and platform operations.

This fee increase highlights how food delivery platforms are striving to balance growth with profitability. Rather than solely depending on commissions from restaurants or delivery fees, companies are increasingly incorporating additional charges to enhance their per-order contribution margins.

Incremental Monetisation

For Zomato, the ongoing rise in platform fees exemplifies its approach of gradual monetisation, where even small increases across a vast order base can considerably elevate its financial outcomes. As noted in the shareholder’s letter from the last quarter, the food delivery segment boasts 24.9 million average monthly transacting customers. During Q3FY26, this segment recorded a 29% year-on-year growth, escalating from Rs 2,072 crore in Q3FY25 to Rs 2,676 crore. Overall, Eternal posted a revenue of Rs 16,315 crore, with a net profit of Rs 102 crore in the quarter.