Placing orders via Swiggy and Zomato has become a regular part of life for millions of Indians. From midnight snacking to workday lunch or family dinner during weekends, food ordering apps have revolutionized the idea of convenience. Yet, this convenience is slowly becoming more and more costly, and customers are starting to realize the price hikes being made on their orders.
With rising costs of platform fees, delivery costs, GST, and the markup charged by restaurants, the total amount charged for food delivery through online platforms has become far more than the one when paid directly to restaurants. According to industry experts, 2026 could be a critical year for India’s online food delivery market as customers are becoming more conscious about prices.
According to recent reports, both Swiggy and Zomato will keep adding to operational costs to increase their profit margins amid rising costs of logistics and compliance.
Why Is the Cost of Food Delivery Going Up?
The primary cause behind the rising cost of food delivery orders is the increasing number of charges being applied to each order. While it began with just the food bill and delivery charges, it has now become a complex process.
The customers now have to pay for:
1. Platform fee
2. Delivery charge
3. Surge fee during peak time
4. Packaging charges
5. GST on multiple components
6. Restaurant menu markups
While all the individual fees are small, they collectively add to make a huge impact on the final payable amount.
As per the industry reports, the platform fee on Swiggy and Zomato has been increasing steadily over the last one year. It is reported that the platform fee on Swiggy in various markets has gone up to ₹15 including GST. The charges from Zomato have also increased considerably.
Getting the True Picture of Your Food Order
For knowing the reason behind the complaints about expensive food delivery services, we will analyze a ₹500 restaurant order.
Example: Breakdown of a ₹500 Food Order
Fee/Charge Component Approximate Cost
Value of Restaurant Food ₹500
Restaurant Markup on App ₹40-₹70
Delivery Charge ₹25-₹50
Platform Fee ₹12-₹15
Packaging Charges ₹10-₹30
GST and Other Taxes ₹15-₹25
Total Cost of the Order ₹620-₹690
This shows that customers might have to pay an extra 25% to 35% above the actual cost of the restaurant meal.
Many customers have started airing their grievances about the increasing charges for food orders through social media and online forums. They feel ordering food has become a luxury rather than convenience.
GST Impact Adds Further Burden
Taxation is another important reason why food delivery is costly.
According to media reports, there is an 18% GST burden on particular charges related to deliveries. Analysts claim that it alone adds about ₹2 to ₹3 to each customer’s order value based on the delivery service used and the distance involved.
₹2 or ₹3 may not seem much on an individual level, but frequent orders made by consumers will make a huge difference at the end of the month.
In such a highly competitive industry with thin margins, transferring these costs to consumers seems like the most feasible way for platforms to improve revenues.
Restaurant Operators Face Financial Pressures Too
Pricing has not only become an issue for consumers. Restaurants have also complained about increased commission rates and deductions from orders.
As per reports in the industry, restaurant operators pay anywhere between 18% to 28% as commissions on their orders delivered through major food delivery platforms. In addition to GST, marketing costs, and payment deduction charges, total deductions exceed 30% in many cases.
Many restaurant operators are known to increase prices for their food delivered via food delivery apps than those served directly to consumers at their restaurants.
This accounts for the reason behind customers discovering that the same burger, pizza, or biryani is far more expensive on the internet than at the physical store itself.
Consumers Become More Price Sensitive
There were numerous reasons behind the swift growth of the Indian food delivery market, which include affordability, discounts, and convenience. However, the landscape is now changing.
Discounting has been drastically reduced in the past two years. Additionally, hidden fees and increasing platform charges are becoming a part of the consumer experience.
Today, many consumers compare online prices with the prices available directly at the restaurant before making their order. In some cases, consumers may shift to:
Direct ordering from the restaurant
Order pickup
Another platform
ONDC-enabled platforms
Home cooking
Online discussion forums are also witnessing complaints about excessive charges levied by delivery apps without providing better quality service. Complaints have also been reported related to delays, cold food, and improper packaging.
Competition in the Market Rises
Swiggy and Zomato also face competition from emerging players.
On-demand delivery platforms, including those associated with ONDC and low-commission delivery models, are competing against these giants through lower fees and transparent pricing schemes.
According to industry experts, there might come a day when people will have to look for alternative options as a result of steep price hikes by the major players.
In addition, the issue of profitability continues to haunt food delivery companies because of the high cost of maintenance and logistics, as well as advertising expenses.
This is the reason why food delivery companies are concentrating on maximizing their profit margin as opposed to providing customers with attractive discounts.
Implications for the User in 2026
The implication for consumers in 2026 is that ordering food from delivery apps will not be done as easily and casually as it is today.
Here are some of the things that a consumer will do:
Order food infrequently
Opt for subscriptions
Shop around for prices
Pickup food instead of having it delivered
Think twice about convenience services
On the other hand, premium users will still be ready to pay for speedy and convenient food delivery despite the rising cost.
The problem that lies ahead of Swiggy and Zomato is the need to maintain profitability without losing the user.
Conclusion
It is time for the Indian food delivery market to transition into a stage where convenience will become an expensive luxury. The combination of higher platform costs, GST, restaurant commissions, and operational expenses is driving up the cost of each order.
Swiggy and Zomato are the current market leaders owing to their extensive customer base and delivery network. But the growing awareness among customers when it comes to spending money suggests that pricing will be one of the key drivers for future food deliveries in India.
In 2026, the real challenge facing the food delivery business will be whether customers will be ready to pay the premium price every day for the sake of convenience.
