Food delivery giant Zomato has announced a price increase for its platform fee, raising it to ₹12 per order. This adjustment comes just ahead of the busy festive season, a period typically marked by a surge in online food orders. The move is likely to impact both restaurants listed on the platform and ultimately, consumers. While Zomato hasn’t explicitly stated the reasoning behind the increase, it’s speculated that the higher fee reflects increased operational costs or a strategy to capitalize on anticipated higher order volumes during the upcoming holiday period.

The platform fee increase represents a significant change for restaurants using Zomato’s services. These establishments already pay commissions on each order fulfilled through the platform, and this added fee represents an additional cost of doing business. The impact on restaurant profit margins remains to be seen, and some may choose to absorb the cost while others might be forced to adjust their pricing to compensate. The long-term consequences for restaurant partners will depend on consumer reaction to any potential price increases on their favorite dishes.

Consumers, too, are likely to feel the ripple effect of this change. While the ₹12 fee is added to restaurants’ bills, it’s highly possible that some restaurants will pass this cost onto customers, leading to slightly higher prices on menus. This could potentially dampen consumer enthusiasm, particularly during a time when many are already budgeting for festive spending. Whether this price increase will ultimately impact consumer behavior and Zomato’s overall order volume remains to be seen. The coming weeks will offer a valuable case study in the delicate balance between platform profitability and consumer affordability in the competitive food delivery market. The success of this strategy will heavily depend on the elasticity of demand during the peak festive season.