Is Zomato’s Platform Fee Hike Impacting Restaurant Business in Select Cities?

Food-delivery giant Zomato has raised its platform fee to Rs 6 from Rs 5 per order in Delhi, Mumbai, and Bengaluru. Meanwhile, its competitor Swiggy, which had also increased the platform fee in select cities on Sunday, reverted to charging Rs 5 per order on Monday in the same cities, as shown on its app.

When reached for comments on the fee hike, both Zomato and Swiggy declined to provide explanations.

The platform fee, initially introduced last year at Rs 2 per order, has been gradually increased by both companies. This fee is seen as a strategy by food-delivery platforms to enhance their profitability, especially in a market dominated by the duopoly of Zomato and Swiggy.