Rising Platform Fees Amid LPG Shortage Impacting Food Delivery Services

Zomato and Swiggy have raised their platform fees amid an LPG shortage caused by geopolitical tensions in West Asia. This increase comes as many food businesses struggle with reduced operations, leading to a significant drop in delivery orders. Consumers are expressing frustration over rising costs, which they feel are unfairly passed on to them. The situation has also impacted the stock market, with shares of these platforms declining. The government is taking steps to alleviate the crisis by regulating LPG supply. This article explores the implications of these changes on both the food delivery industry and consumers.

By Narendra Chaudhary Mar 24, 2026, 14:21 IST

Food Delivery Platforms Increase Fees

In light of the ongoing LPG shortage linked to geopolitical issues in West Asia, food delivery services Zomato and Swiggy have raised their platform fees. Swiggy's new fee stands at Rs 17.58 per order (including GST), an increase from the previous Rs 14.99. This adjustment follows Zomato's recent hike, which raised its fee by Rs 2.40 to Rs 14.90 before GST, bringing the total to Rs 17.58 after tax. These fee increases occur amidst significant disruptions in the food delivery ecosystem, as many restaurants, dhabas, cloud kitchens, and street vendors are forced to reduce operations or temporarily close due to LPG shortages, directly affecting order volumes on these platforms.

Impact of LPG Crisis on Food Delivery

LPG Crisis Hits Operations of Food Delivery Apps

According to industry estimates and worker organizations, food delivery orders have seen a drastic decline. In cities such as Bengaluru and Pune, daily order volumes have reportedly dropped by 50–70%. The Gig and Platform Service Workers Union highlighted that many delivery workers, who previously managed around 30 orders daily, are now completing only five to ten, severely impacting their earnings. The union stated that the shortage of commercial LPG cylinders has disrupted operations across food businesses, leading to a 50–60% decrease in orders on platforms like Zomato and Swiggy.

India relies heavily on West Asia for over half of its LPG imports. Ongoing tensions involving Israel, the US, and Iran have disrupted crucial shipping routes, including the Strait of Hormuz, affecting supplies to Indian ports. This situation has also influenced the stock market, with shares of Zomato and Swiggy experiencing declines of up to 5% on March 12, 2026, due to concerns over reduced demand. Analysts from a financial services firm predict that prolonged disruptions could result in a 3% drop in quarterly revenue, significantly impacting profitability.

In response to the crisis, the government has invoked the Essential Commodities Act to regulate supply and has approved an additional 20% allocation of commercial LPG to states as of March 21, 2026, specifically for restaurants and hotels. The Petroleum Ministry has also instructed states to prioritize smaller 5kg cylinders for migrant workers and essential food businesses.

Consumer Reactions to Rising Costs

Customers Unhappy

Consumers are expressing dissatisfaction with the rising delivery costs, which they feel add to their financial burden. A 30-year-old professional named Priya remarked, "It's so unfair for us. Now when I have to rely more on these apps, they have increased their platform fees. The bills now also have a gas fee separately. Seems like all the extra cost is being passed on to the customer." Many users share similar sentiments. Sudhanshu, a resident of Ghaziabad, stated, "War is not good for anyone and now even India is facing heat. You go to any street in the locality, and you will find the vendors just sitting there without any gas cylinder, their business almost stopped and hoping that somehow the situation will ease."

Another working professional, Sirat, added, "I live alone and I am heavily reliant on outside food due to long working hours. My society does not have a PNG connection, yet with these platforms raising their prices, it will be heavy on my pocket." Despite the increased platform costs burdening customers, financial data and industry reports indicate that food delivery platforms are experiencing significant economic challenges during this crisis.