Food delivery platform Zomato has increased the fee it charges users per order by Rs 2.40, raising it to Rs 14.90 on a pre-GST basis, up from Rs 12.50 previously. The hike is being implemented across all markets in India where the company operates and marks the first increase since September last year. The move aligns Zomato more closely with its main competitor Swiggy, which currently charges a platform fee of Rs 14.99 inclusive of GST, while magicpin, the country’s third-largest food delivery aggregator, continues to maintain its fee at Rs 14.20 and has ruled out any immediate increase.

Industry observers note that the rise in Zomato’s platform fee comes at a time when the food delivery sector is facing mounting operational costs. The ongoing conflict in West Asia has pushed up crude oil prices, driving higher fuel and logistics costs for delivery services. Analysts suggest that these factors, coupled with inflationary pressures on raw materials and restaurant supplies, are prompting companies to adjust pricing structures in order to maintain profitability while balancing consumer demand.

Anshoo Sharma, CEO and Founder of magicpin, explained the rationale behind his company’s decision not to increase fees, citing the current challenges in the food delivery ecosystem. “At a time when the food delivery ecosystem is navigating a tough phase with rising costs, we have consciously decided not to increase our platform fee to support our restaurant partners and keep food delivery accessible for customers,” he said. The statement underscores the competitive dynamics in the Indian market, where customer loyalty and affordability remain critical in attracting repeat business.

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The platform fee hike is expected to make ordering food slightly more expensive for millions of users across India, particularly for frequent consumers who rely on app-based deliveries for convenience. While the increase is modest in absolute terms, experts warn that continued volatility in fuel prices and supply chain disruptions could result in further cost adjustments for both restaurants and delivery aggregators in the near future. Users may respond by being more selective in their orders or exploring alternative platforms that offer lower service charges.

Despite the challenges, Zomato continues to strengthen its position in India’s highly competitive food delivery landscape. By implementing the fee hike, the company aims to offset rising operational costs without compromising service quality or delivery speed. At the same time, the move highlights the broader pressures on the food delivery sector, which must navigate fluctuating global energy markets, shifting consumer behaviour, and rising expectations from both restaurants and users.

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