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Zomato hikes platform fee to Rs 12 as festive demand looms
With demand set to spike during the festive season, Zomato and Swiggy tighten their platform fee strategy, even as online food delivery growth slows and new challenger Rapido’s Ownly enters the fray.
The move comes just ahead of the festive season when order volumes are expected to surge.
Food delivery platform Zomato has raised its platform fee on orders to Rs 12 from Rs 10, excluding GST, ahead of the festive season when demand is expected to surge, as per media reports.
The hike mirrors a similar move by rival Swiggy, which recently pushed its platform to Rs 14 (exclusive of GST) in select pin codes. Both players had introduced the per-order levy in 2023 and have steadily raised the amount since then.
The timing highlights intensifying cost pressures on India's food delivery duopoly, which is facing slowing growth. Zomato reported a 16% year-on-year in gross order value (GOV) at Rs 10,769 crore for the April-June quarter, down from the 20%+ growth it was clocking in recent quarters.
Both companies are aggressively expanding their quick commerce businesses to offset pressure on core food delivery.
However, competition could intensify as Rapido enters the market with its newly launched food delivery service Ownly.
Currently operating in Bengaluru's Koramangala, HSR, and BTM layout, Ownly is positioning itself as a budget-friendly alternative with restaurant commission rates ranging from 8-15%, significantly lower than Zomato and Swiggy's 16-30%, as per reports.
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