Zomato Raises Fees to ₹12-Is Convenience Worth the Cost?

Zomato has raised its platform fee by 20%, from ₹10 to ₹12 per order. The move raises a wider question, even though it falls during the festive season: how much are consumers willing to pay for the convenience of food delivery?

This is the second year in a row that Zomato has increased fees before the festive season, and the new platform fee is applicable nationwide. The fee increased from ₹6 to ₹10 per order last year. Regular users will be affected, even though ₹2 might seem insignificant, particularly during the busy festive season.

Financial Backdrop

Zomato's parent company, Eternal Ltd., recently reported a 36% sequential drop in net profit to ₹25 crore for the first quarter of FY26, a result of significant investments in its quick-commerce segment and other growth initiatives, despite a substantial increase in revenue. This financial performance was the backdrop for Zomato's platform fee hike to ₹12 per order, effective September 2, 2025, to capitalize on increased festive season demand, a move that saw a minimal investor reaction with the stock dipping slightly.

Swiggy, Zomato's competitor, recently tested a ₹14 platform fee in a few locations, indicating that growing delivery costs are starting to affect the entire industry. Despite the possibility of some user annoyance, both platforms appear to be shifting away from growth driven by discounts and toward long-term profitability.

India's food delivery industry is at a turning point. Platforms are evaluating user acceptance of increased fees while striking a balance between user retention and profitability. Although many people still find that ordering meals instantly is more convenient, this festive season will serve as a practical test.

What Customers Can Expect Next

The crucial question still stands: will customers accept the increased fees or change the way they place orders? Some customers might look into other options like subscription plans, rival apps, or even home cooking as a result of Zomato's fee increase. Whether convenience is truly worth the price will become clear as the holiday season progresses, and how India's food delivery system responds to these developments.