Food delivery in India is poised to become more expensive as leading platforms Zomato, Swiggy, and Magicpin increase platform fees ahead of the festive season, with an upcoming 18% GST on delivery charges set to compound the burden from September 22. This reflects the sector's shift toward diversified revenue streams amid rapid growth, where apps now handle millions of daily orders but face escalating costs from logistics and competition.

Swiggy has hiked its fee to Rs 15 (inclusive of GST) in select markets, Zomato to Rs 12.50 (excluding GST), and Magicpin to Rs 10 per order, aligning with industry trends. Estimates suggest the GST levy will add approximately Rs 2 per order for Zomato users and Rs 2.6 for Swiggy customers, potentially affecting affordability for price-sensitive consumers during peak demand periods.

A Magicpin spokesperson noted the company already pays 18% GST on delivery costs, so the change won't impact its structure or users, keeping fees at the lowest among majors. Zomato and Swiggy did not respond to inquiries.

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These simultaneous hikes highlight rising costs in India's food delivery ecosystem, raising questions about sustaining convenience for millions. As platforms balance profitability with user retention, experts predict potential shifts toward premium services or loyalty programs to mitigate backlash.

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