Zomato dominates India’s food delivery market with impressive growth numbers. The company connects millions of customers to restaurants daily. Moreover, their recent acquisition of Blinkit expanded their quick commerce presence significantly. Their Gold membership program attracts new customers regularly. Additionally, their profit margins improve through efficient delivery operations. Their technology platform handles millions of orders seamlessly.
Besides food delivery, they offer dining-out services and restaurant discovery options. The company focuses heavily on customer satisfaction and delivery speed. Their marketing strategies keep engagement levels high consistently. Most importantly, their financial performance has shown strong improvement lately. Their stock price reflects growing investor confidence. Meanwhile, they explore new business opportunities actively. The company maintains its competitive edge through continuous innovation.
Delivery Fee
Platform fees are additional charges applied to each food order, separate from restaurant charges, delivery fees, and goods and services tax.
Zomato first introduced the platform fee in 2023, as a Rs 2 per order flat levy, and has subsequently increased it over time. Its Bengaluru-based rival Swiggy, which was the first to start charging this levy, has also raised the fee overtime to Rs 7.
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Revised Delivery Fee
Zomato has increased the platform fee it charges users for food delivery to Rs 10 per order during the festive season from Rs 7 earlier, according to information on the Gurgaon-based company’s app.
According to the Zomato management, this fee helps the company to pay the bills and to keep Zomato running. The management also added that in order to maintain services during the festive season, it has increased slightly the delivery fee.
Impact on Earnings
Zomato’s recent platform fee increase from Rs 7 to Rs 10 shows strategic timing. The festive season traditionally brings higher order volumes. Moreover, this 43% fee increase directly impacts their revenue per order. Furthermore, analysts expect this
move to boost their quarterly earnings significantly. The company processes millions of orders monthly across India.
Based on previous reports, Zomato handled approximately 1.5 billion orders last year. Therefore, at Rs 7 per order, platform fees alone generated about Rs 1,050 crore annually. Additionally, with the new Rs 10 fee, this could increase to Rs 1,500 crore yearly. Most importantly, customers continue ordering despite fee increases. Meanwhile, the platform maintains its market share effectively. The additional revenue supports their path toward sustained profitability.
Written By: Dipangshu Kundu
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