Food delivery company Zomato has increased its platform fee, making online food ordering slightly more expensive for customers. The company has raised the fee from ₹12.50 to ₹14.90 per order, which is an increase of ₹2.40. This new charge came into effect on March 20, 2026.
The platform fee is a fixed amount that users pay on every order, apart from the cost of food, delivery charges, and GST. With this increase, customers will now have to spend more each time they order food through the app. While ₹2.40 may seem like a small amount, frequent users may notice a difference in their monthly spending.
The decision comes at a time when global and local factors are affecting costs in the food delivery business. Rising fuel prices, supply chain issues, and higher operational costs are some of the key reasons behind this move.
One of the main reasons for the increase in platform fees is the rise in fuel and energy costs. Ongoing tensions in the Middle East have affected the supply of crude oil and liquefied petroleum gas (LPG). This has had a direct impact on transportation and delivery expenses.
When fuel prices go up, delivery partners have to spend more on travel. This increases the overall cost of delivering food from restaurants to customers. Companies like Zomato often adjust their charges to balance these rising expenses.
Another reason is the general increase in operational costs. Running a large platform like Zomato involves expenses such as technology development, customer support, marketing, and logistics. As the company grows, these costs also increase.
The platform fee helps the company cover some of these expenses without directly increasing delivery charges or food prices. However, for customers, the total bill still goes up, as the fee is added to the final amount.
Despite the increase, Zomato continues to focus on improving its services. The company has been working on faster delivery, better customer experience, and expanding its reach to more cities. These improvements also require investment, which may contribute to higher charges.
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Even with rising costs, Zomato’s business has shown strong growth in recent months. During the October to December quarter, the company reported a significant increase in order volumes. This growth was driven by festive demand, attractive offers, and a growing number of users.
The company’s net order value (NOV) grew by 16.6 percent year-on-year, reaching ₹9,846 crore. Gross order value (GOV), which includes all orders placed on the platform, also saw a strong increase of over 21 percent.
Another important factor behind this growth is the rise in users from smaller cities. Zomato has seen increasing demand from tier-II and tier-III cities, where more people are now using online food delivery services. Affordable options and better availability have helped the company attract new customers in these areas.
The company’s average monthly transacting users reached 24.9 million in the December quarter, showing a steady increase. This indicates that more people are relying on food delivery apps for their daily needs.
In addition to expanding its core business, Zomato is also focusing on technology and innovation. Its parent company, Eternal, has recently partnered with OpenAI to improve artificial intelligence (AI) capabilities.
This collaboration aims to enhance various services across platforms like Zomato, Blinkit, District, and Hyperpure. AI will be used to improve customer experience, optimise delivery routes, and make the platform more efficient.
The partnership also includes initiatives like Feeding India and new AI-based ventures. This shows how technology is becoming an important part of the food delivery industry.
For customers, this could mean better recommendations, faster deliveries, and improved service quality in the future. However, it also highlights the need for companies to invest more in technology, which can impact pricing.
In conclusion, Zomato’s decision to increase its platform fee reflects the changing dynamics of the food delivery industry. Rising costs, growing demand, and the need for innovation are all influencing how companies operate.
While the increase may add to customer expenses, it is part of a larger effort to maintain service quality and support business growth. As the industry continues to evolve, customers can expect both improvements in service and occasional changes in pricing.
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