Food delivery gets costlier as Zomato hikes charges nationwide, while rival Magicpin opts against increase
Zomato has increased its platform fee to Rs 14.90 per order across India, making online food delivery marginally more expensive for users, even as rival magicpin has ruled out any immediate hike.
The revised fee—up from Rs 12.50—marks an increase of Rs 2.40 per order and has been rolled out across all markets where Zomato operates, according to app listings and industry sources.
Rising costs drive pricing action
The hike comes amid mounting cost pressures in the food delivery ecosystem, including higher fuel prices and operational expenses. Industry observers note that such platform fees—distinct from delivery charges—have increasingly become a key lever for improving unit economics.
This is Zomato’s second fee increase within six months, signalling a broader trend of monetisation across food delivery platforms.
Competitive landscape
Rival Swiggy currently charges a platform fee of around Rs 14.99 per order (inclusive of GST), broadly aligning with industry pricing benchmarks.
However, Magicpin has taken a divergent stance. The company, which currently charges approximately Rs 14.20 per order, has chosen not to increase fees in the near term, citing the need to support restaurant partners and keep food delivery affordable for consumers.
Impact on consumers
The latest revision is expected to raise the overall cost of ordering food online for millions of users. While the platform fee remains a relatively small component of the total bill, its cumulative impact is significant given the high volume of daily orders processed by platforms.
As competition intensifies and cost pressures persist, further pricing adjustments across the sector cannot be ruled out, particularly as platforms seek to balance profitability with consumer demand.
