Zomato Raises Platform Fee to ₹10 During Festive Season Surge

The festive season is upon us, prompting an uptick in food and sweet orders from popular delivery apps like Zomato and Swiggy. In response to this anticipated surge, Zomato has increased its platform fee from ₹6 to ₹10 per order, rebranding it as the “Festive Season Platform Fee.” A notification on the Zomato app explained, “This fee helps us pay our bills to keep Zomato running. To maintain services during the festive rush, it has increased slightly.”

Zomato first introduced the platform fee in 2023, starting at ₹2 per order. Since then, the fee has seen a series of incremental increases: it rose to ₹3, then to ₹5 in April 2024, and later to ₹6 in July 2024. The current hike to ₹10 marks a significant five-fold increase in just one year, reflecting the company’s strategy to manage rising operational costs amid growing demand.

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It’s important to note that the platform fee is separate from other charges that may apply to an order, such as Goods and Services Tax (GST), delivery fees, and charges set by restaurants. Customers must pay this platform fee regardless of their Zomato Gold membership status, which typically offers perks like discounts on orders.

Zomato’s Share Price Rises Amid Fee Increase, Reflecting Investor Confidence

In conjunction with this fee increase, Zomato’s share price has shown positive movement. On Wednesday, the company’s shares rose by 2.3%, trading at ₹262.25 by 11:50 AM. This growth is part of a broader trend, with Zomato’s share price experiencing a remarkable increase of over 140% in the past year, indicating investor confidence in the company’s performance and strategic adjustments.

Overall, as Zomato prepares for the festive rush, the adjustments in fees and positive share performance signal both the challenges and opportunities present in the competitive food delivery market.

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