It is starting to feel like going back to restaurants instead of ordering online would be a better idea now. Well, this is because Zomato has raised its platform fee to Rs 14.9 per order, narrowing the gap with rival Swiggy, which had earlier increased its fee to Rs 15 during a period of peak demand.
Consistent surge in platform fees
The latest hike builds on a series of increases over the past two years. Zomato introduced the concept of a platform fee in April 2023 with a minimal charge of Rs 2 per order. This was then increased to Rs 10 and then to Rs 12 gradually across months.
As per media reports, the company’s order volumes of around 2.3–2.5 million per day meant that even a Rs 2 increase translated into a meaningful jump in revenue, taking daily collections from about Rs 2.5 crore to nearly Rs 3 crore.
The surge is seen as a step to offset a part of their losses. Most are struggling with the rising costs and competition in their quick commerce segments.
Swiggy had already moved to Rs 15
Swiggy had raised its platform fee to Rs 15 per order about six months ago, after experimenting with multiple price points in quick succession. Swiggy has clarified that this rate is inclusive of GST.
The company had briefly tested Rs 14 during periods such as Independence Day before settling at Rs 15, signalling confidence that higher charges would not significantly affect order volumes.
A point to notice here is that Toing, another subsidiary of Swiggy, which also runs as an aggregator platform for restaurants, is charging no platform fee, and that seems to be its biggest promotion. Zomato, as of now, does not have a version of this. We can only wait and watch for this to roll out soon!
Platform fees are charged on every order, over and above delivery charges, GST and restaurant-related costs.
Pressure from quick commerce investments
Swiggy reported a consolidated net loss of Rs 1,065 crore for the quarter, up from Rs 799 crore a year earlier, as continued investments in quick commerce weighed on profitability.
However, revenue rose 54% year-on-year to Rs 6,148 crore, while its adjusted EBITDA loss narrowed to Rs 712 crore from Rs 933 crore.
In contrast, Eternal (Zomato) reported revenue from operations of Rs 16,315 crore for Q3FY26, with adjusted revenue at Rs 16,692 crore, up 190% year-on-year.
Furthermore, the company posted a profit after tax of Rs 102 crore and an adjusted EBITDA of Rs 364 crore, up 28% year-on-year, with both quick commerce and Hyperpure turning EBITDA positive for the first time.
Zomato, Swiggy share price performance
Eternal’s share price increased 1.49% as of market closing on 20 March. The stock has been down over 13% in the last month. On the other hand, Swiggy’s share price remained rather flat today as of market closing. Swiggy’s stock price has been down 13.31% in the last month.