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Highlights
- Zomato’s platform fee hike boosts profitability and margins
- Bernstein keeps the price target unchanged at Rs 370
- Zomato’s stock has shown a neutral to slightly positive reaction to each pricing change
Zomato Platform Fee Hike: Food delivery giant Zomato has quietly raised its platform fee by Rs 2.40 per order, a small tweak that could add up for frequent users. While customers may feel the pinch, brokerages see this move as a smart boost to the company’s bottom line and long-term profitability.
On a pre-GST basis, the platform fee now stands at Rs 14.90 per order, up from Rs 12.50 earlier. Including GST, users will pay Rs 17.58 per order as a platform fee.
After accounting for GST, the overall cost of an order, including the platform fee, has increased by Rs 2.68, or approximately 18 per cent, making food delivery slightly more expensive for consumers.
Notably, even after the latest hike, Zomato’s platform fee remains marginally below that of Swiggy, which stands at Rs 14.99. This puts Zomato’s fee about 0.6 per cent lower than its competitor’s current charge.
Profitability boost vs demand concerns
The development raises an important question: Does this move strengthen the company’s financial position, or could it create pressure by impacting demand?
According to Elara Capital, every Re 1 increase in platform fee has a positive impact on take rates. Specifically, Zomato sees a 22 basis points improvement, while Swiggy sees a 20 basis points gain, highlighting the margin-accretive nature of such hikes.
Stock reaction to platform fee hikes over time
From August 2023 to March 2026, since the introduction of the platform fee through to the latest hike, Zomato’s stock has shown a neutral to slightly positive reaction to each pricing change.
1. August 2023: Introduction of platform fee (Rs 2)
The platform fee was introduced around August 6, 2023.
| Date | Stock Reaction |
| 07-08-2023 | +2.31 per cent |
2. October 2023: Fee increased to Rs 3
The stock movement remained mixed around this period, reflecting limited direct impact from the hike.
3. January 2024: Fee increased to Rs 4 (January 1, 2024)
| Date | Stock Reaction |
| 01-01-2024 | +0.65 per cent |
4. April 2024: Fee increased to Rs 5 (around April 20)
| Date | Stock Reaction |
| 22-04-2024 | +2.19 per cent |
5. July 2024: Fee increased from Rs 5 to Rs 6 (around mid-July)
| Date | Stock Reaction |
| 18-06-2024 | +1.27 per cent |
6. October 2024: Fee increased to Rs 10 (October 23, 2024)
| Date | Stock Reaction |
| 23-10-2024 | +3 per cent |
7. September 2025: Fee increased to Rs 12 (September 2, 2025)
| Date | Stock Reaction |
| 02-09-2025 | +0.40 per cent |
| 03-09-2025 | +1.15 per cent |
| 04-09-2025 | +0.05 per cent |
| 05-09-2025 | +0.89 per cent |
| 08-09-2025 | +0.15 per cent |
8. March 2026: Fee increased to Rs 14.90 (March 23, 2026)
In contrast to previous instances, the stock declined following the latest hike. It fell by Rs 4.63, or 1.99 per cent, to Rs 227.66. However, this drop may be attributed more to broader market sentiment rather than the price hike alone.
Historically, platform fee hikes have either had a neutral or mildly positive impact on Zomato’s stock, indicating that investors generally view such moves as margin-accretive. The latest decline appears to be an exception, likely influenced by external market factors rather than company-specific developments.
Bernstein maintains bullish stance
Following this move, brokerage firm Bernstein has maintained a bullish stance on the food delivery platform.
Bernstein has maintained an “Outperform” rating on Eternal, with an unchanged target price of Rs 370, implying an upside of 62.5 per cent from the current market price.
The brokerage highlights that platform fees remain a key driver of profitability in the food delivery business. In Q3FY26, gross platform fee collections stood at approximately Rs 3.04 billion, accounting for about 10 per cent of adjusted revenue. Platform fees also contribute a significant share to EBITDA per order.
Bernstein estimates that nearly 50 per cent of EBITDA growth is driven by increases in platform fees. Currently, the fee accounts for roughly 3 per cent of gross order value, with demand elasticity remaining low, supporting profitability despite price hikes.
The net-to-gross platform fee conversion is estimated at 35 per cent to 40 per cent, with incremental EBITDA per order of around Rs 0.9 to Rs 1.0. This could lead to a 4 per cent to 5 per cent increase in EBITDA per order, which is currently in the range of Rs 20 to Rs 22 for food delivery.
The brokerage also expects Swiggy to gradually increase its platform fees over time.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
