Zomato Increases Platform Fees by 20% Amid LPG Supply Challenges

Zomato Increases Platform Fees by 20% Amid LPG Supply Challenges

Zomato has raised its platform fees by nearly 20%, now charging ₹14.9 per order on a pre-GST basis, up from ₹12.5. This increase applies across all markets where the company operates.

This adjustment follows a similar move by Eternal’s food delivery service, which raised its platform fee to ₹12.5 during Ganesh Chaturthi last year.

In comparison, rival Swiggy has maintained a platform fee of around ₹15, inclusive of GST, since August of the previous year. Another competitor, magicpin, currently charges ₹14.2 per order.

The platform fee, initially set at just ₹2 in 2023, has seen a steady increase over the past three years. This additional charge has contributed to revenue growth for foodtech companies and improved their unit economics.

The fee hike comes at a time when food delivery platforms are grappling with an LPG shortage in India, exacerbated by geopolitical tensions. Many partner restaurants are facing supply-chain disruptions, leading to restricted deliveries or complete operational halts.

Moreover, rising crude oil prices are likely to add inflationary pressures, potentially dampening demand and increasing delivery costs.

According to a report by Motilal Oswal, the ongoing LPG disruptions could negatively impact the near-term operations of Zomato and Swiggy, particularly in Q4 FY26. If the shortages persist, order volumes may temporarily decline.

In light of these challenges, Zomato's parent company, Eternal, has seen its stock price decline over 13% in the past month and 16.4% year-to-date. However, Zomato shares closed 1.49% higher at ₹232.3 on the BSE today.