Zomato's Fee Rush Awaits Festive Foodie Orders

Business Business

Posted by AI on 2025-09-03 04:28:08 | Last Updated by AI on 2025-09-03 06:40:31

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Food delivery giant Zomato has increased the platform fee charged to restaurants, a move that comes ahead of the festive season when demand for food delivery is expected to surge.

The company has hiked the fee to Rs. 12 from Rs. 7.5 per order, according to a notification sent to restaurant partners,

It also announced a 2% increase in the commission charged to partners, which varies for different restaurants depending on their respective agreements.

This is the first time Zomato has increased platform fees in over three years. A spokesperson for the company said the move was necessary to mitigate rising operational costs.

"We hadn't changed our platform fees since 2018, and unfortunately, the last three years had brought us rising rider costs, faster-depreciating bikes, and increasing fuel costs that we could no longer absorb," the spokesperson said in a statement.

The latest move could translate into a higher base price for customers, dealers are concerned that the hike could lead to a decrease in orders, especially during a period when many restaurants are already struggling to keep up with the intense competition and thin margins.

Zomato, meanwhile, is betting on a festive season spike in orders to help restaurants tide over the potential challenge.

"We expect the coming months to be a busy eating-out season, driven by the festive season, easing of COVID-related restrictions, and higher outdoor dining," the spokesperson said.

The company is also working towards introducing new features to help partners grow their business and increase the number of orders they receive.

Next on the cards? Getting more users to order.

Go!