Key Highlights :
Zomato hiked its platform fee from ₹10 to ₹12 per order before the festive season.
Swiggy hiked its platform fee to ₹15 per order, its third increase in three weeks.
Key Background :
The rollout of platform fees in India’s food delivery market started small in 2023, when both Zomato and Swiggy began collecting customers a mere ₹2 per order. Two years ago, it was framed as a small contribution towards refining operations and customer experience. It has risen steadily over the past two years and is now a major revenue source. While Zomato charges ₹12 and Swiggy charges ₹15, platform fees have turned out to be a key weapon to enhance profitability in an industry that operates on wafer-thin margins.
For Zomato, the hike in fees is when its business performance reflects robust top-line expansion but declining profitability. The company, in the quarter ended June 2025, reported 71% year-on-year growth in revenues led by expansion in its delivery business, its quick-commerce division Blinkit, and its Hyperpure supply-chain business. However, its net profit fell to ₹25 crore from ₹253 crore in the same period last year. The steep fall was attributed to heavy expenditure on Blinkit and ongoing spending to retain and acquire customers. Increasing the platform charge enables Zomato to profit from the anticipated surge in festive orders and moderate financial stress.
Swiggy also has the same problem, albeit with more severe losses. During the same quarter, the company’s revenue increased by 54% to almost ₹5,000 crore. Even with this expansion, the net losses almost doubled to ₹1,197 crore, the weight of Instamart, its rapid-commerce foray, being very heavy. Operating costs, freebies and discounts, and the expenses of speedy deliveries have dragged down the balance sheet of the company. The move to raise the platform fee three times in three weeks points to the urgency with which Swiggy is trying to claw back some of the rising costs.
The holiday season is an important time for both platforms because it usually experiences an uptick in orders as consumers treat themselves to restaurant food and give out meals as presents. This provides a special opportunity to increase platform fees without incurring significant danger of pushback from customers, as the demand is likely to remain strong during festivities. By staging the increases strategically, Zomato and Swiggy will be able to drive revenues as high as possible while maintaining steady customer behavior.
The financial consequences of the increases are huge. Swiggy alone processes over two million orders a day, which translates to even a ₹1 rise per order giving the company crores of additional revenues. Its platform fee being raised to ₹15, the company can expect to take nearly ₹3 crore additional every day if order numbers are maintained. Zomato, also, will get a big lift from its ₹2 hike, as can be seen from the upbeat investor reaction its parent company’s stocks went up by 2% following the announcement.
In the longer run, platform fees will continue to be a dynamic tool for both firms. By varying them with respect to demand cycles, Zomato and Swiggy can gradually enhance their margins without changing discounts or pay-outs to restaurant partners. With fast commerce continuing to require large amounts of capital investment, these incremental revenues from food delivery will be indispensable in helping both firms keep pace in an intensely competitive market.
About the Author
Abhishek Roy
Abhishek Roy is a Managing Editor at Business Minds Media India.