Zomato's delivery prices are primarily driven by strategic platform fee increases and new distance-based fees introduced since 2023 to improve margins after a 90% profit decline in Q1 FY26. The 18% GST on delivery charges, mandated from September 2025, significantly raises per-order costs.

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CURRENT STATE

Zomato has raised its platform fee from ₹2 in 2023 to ₹12.50 by early 2026 and added distance-based fees of ₹20-₹40 for deliveries beyond 4 km. The 18% GST on delivery charges adds ₹2-2.6 per order, inflating delivery costs. This offsets a profit fall despite 70% revenue growth.

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