Food delivery leader Zomato has increased its platform fee to Rs 12 per order from the previous Rs 10, as high demand during the festival season boosts transaction volume. The rise, although appearing slight, is intended to enhance the profitability of each order and strengthen the company's financial position.

The platform fee is an extra cost imposed by Zomato and Swiggy on each order, in addition to other items like delivery fees, GST, and restaurant charges. Initially launched in April 2023 at a rate of Rs 2 per order, Zomato has consistently raised the charge over the last two years to its present amount of Rs 12.

With Zomato's current order volumes — approximately 2.3–2.5 million orders daily — the charge of Rs 12 results in around Rs 3 crore in daily earnings for the company, compared to roughly Rs 2.5 crore when the fee was Rs 10. This results in an extra income of as much as Rs 45 crore every quarter.

Although a Rs 2 hike might appear insignificant to users, the overall effect significantly enhances the company's financial well-being due to the volume of daily transactions.

The increase is viewed as a holiday initiative, with the chance that Zomato might reduce the charge to Rs 10 after the demand surge diminishes.

Both Zomato and competitor Swiggy have previously tested increased platform fees during high-demand times and, if order volumes showed no impact, maintained the adjusted charges for the long term.

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In addition to platform fees, Zomato has been adding various other monetisation strategies. The firm has tested rain surcharges in inclement weather and, more recently, initiated trials of a Rs 50 'VIP Mode' in specific areas, which offers quicker deliveries, priority riders, and concierge-like assistance for chosen premium clients. In contrast to subscription-based models like Swiggy One, this feature enables Zomato to generate additional revenue on each order individually.

Additionally, it has implemented a 'long distance fee' that restaurants must pay for orders delivered over four kilometres, facing some resistance from smaller businesses.

Zomato’s attempts to strengthen its profits occur at a moment when the company has indicated a significant drop in earnings, mainly because of heightened investments in its rapid delivery division, Blinkit.

Eternal Ltd (previously Zomato) on July 21 announced a significant 90 percent year-on-year (YoY) drop in quarterly profit after tax (PAT) to Rs 25 crore for the first quarter (Q1) of the financial year 2025-26 (FY26), a decrease from Rs 253 crore in the corresponding quarter last year.

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Its operational revenue increased by 70.4 percent year-on-year to Rs 7,167 crore in Q1, compared to Rs 4,206 crore the previous year. It reported earnings of Rs 5,833 crore in the last quarter.

As the holiday season approaches, these actions highlight how Zomato and Swiggy are intensifying their focus on monetization and operational efficiencies while experimenting with premium features to generate additional revenue from frequent customers.