Zomato has increased its platform fee to ₹15 per order, up from around ₹12.5 earlier, marking nearly a 20% rise. The new fee is already visible on the app and continues the company’s steady increase from just ₹2 in 2023.

Analysts believe this move will help improve profitability without impacting customer demand. The hike also brings Zomato in line with competitor Swiggy, reducing the chances of users switching platforms due to price differences.

As per a report of Storyboard 18, Karan Taurani, Executive Vice President at Elara Capital, said even a ₹1 increase in platform fee can significantly boost earnings and margins. If the revised fee is rolled out across about half of Zomato’s markets, the company could see a noticeable rise in profits by FY27.

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Why demand will be same?

Despite the increase, the platform fee remains a small portion of the total order value—around 3% on average. According to Taurani, this is unlikely to discourage users from placing orders.

Zomato has also seen steady order growth even after multiple fee hikes in the past. The number of monthly active users has increased in recent quarters, supporting continued demand.

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Margins improve, but challenges are there

The fee hike aligns with Zomato’s strategy to improve margins over time. Analysts expect margins to gradually rise and reach around 6% by FY28.

However, rising fuel prices remain a key concern, as they can impact delivery costs. Taurani noted that higher platform fees could help offset some of this pressure.

Industry reports suggest that the platform fee has become a high-margin revenue stream for Zomato, contributing directly to its bottom line.

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