Zomato Increases Platform Fees Amidst Rising Competition in Food Delivery Sector
Zomato has announced an increase in its platform fees, raising the cost per order from ₹12.50 to ₹14.90. This change comes amidst growing competition in the food delivery sector, particularly with the launch of Rapido's new service, Only, in Bengaluru. As customers express concerns over rising delivery costs, the impact of increasing crude oil prices adds further pressure on the industry. This article explores the implications of these changes for users and the competitive landscape of food delivery services.
Mar 20, 2026, 15:55 IST
Zomato's Fee Hike Explained
According to information available on Zomato's app, the food delivery service has raised its platform fee by ₹2.40 per order. The fee has increased from ₹12.50 to ₹14.90 per order before GST. This marks another increase following a previous hike in September 2025. After accounting for taxes, Zomato's competitor, Swiggy, currently charges a platform fee of ₹14.99 per order. Typically, both companies exhibit similar pricing trends regarding such fees. This latest increase comes at a time when the food delivery industry is witnessing new competitive dynamics. Urban mobility startup Rapido has recently launched its food delivery service, Only, in Bengaluru. The company has stated that it will not impose any additional charges on customers or restaurants apart from the delivery fee.
Impact of Rising Costs
Rapido's entry could exert pressure on existing companies, especially as customers have expressed concerns over multiple fees added to food delivery orders. The rise in platform fees coincides with increasing crude oil prices. The escalating fuel costs may affect delivery services, impacting both restaurants and delivery partners associated with the platform. For users, this change translates to a higher total bill per order, even as competition in the sector continues to intensify.