Gst on online food delivery: People often do online food orders when they feel hungry, but from September 22, pockets will have to be loosened for it. In fact, many important decisions were taken in the GST Council meeting held last week.

Under this, online food delivery and quick commerce platforms like Swiggy, Zomato, Blinkit, Zepto have been brought under the purview of 18 percent GST slab. That is, these platforms will have to pay GST on their services. In such a situation, now the question comes that how will companies manage this increased expenses, will the burden be put on customers?

Recently increased platform fees

The Economic Times, citing Morgan Stanley, has stated in its report that due to the new rule, Jomato’s food delivery business may cost about Rs 2 per order and about Rs 2.6 per order on Swigy. Currently, Jomato’s average delivery fee is Rs 11–12 and Swigy’s average delivery fee is Rs 14.5. Platforms like Jomato and Swigi are already facing increased costs. He also increased his platform fees recently to earn more profit during the festive season. Now questions are being raised on how companies will face the challenge of increasing the burden of GST.

Will the pressure increase on customers?

According to media reports, the company is currently assessing the increased expenditure on its operations and the impact on its profits. Now if this GST is put on customers, then of course the delivery charges will increase. Talking to the Indian Express, an official of the food delivery platform also said that we have no other option other than putting its weight on customers.
After the new rates are implemented from September 22, customers can approach dominos or other operators instead of ordering food from zomato or swigy. According to a report by the Indian Express, Dominos puts 5 percent GST with packaging charges on food audience. At the same time, online food delivery platforms will be charged 18 percent GST on delivery along with collecting platform fees including Rs 88 restaurant GST, Packing Charge and Rs 15 GST.

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Swiggy platform fee: Swiggy, a company that delivers online food, has increased its platform fees from Rs 12 to Rs 14 per order. The company has made this change at a time when there is pressure to order during the festive season. Since people like to get food from outside due to all the busyness in the festive season, the daily order volume of the company is also growing rapidly.

Company will get strong profit

However, the increase of Rs 2 in the platform fee may be less to the customers, but the company is sure to benefit from it. The company will also be strong to some extent. Industry experts say that Swiggy usually fulfills more than 20 lakh orders every day. With the increase of Rs 2 in the platform fees, the company will generate an additional revenue of about Rs 2.8 crore every day. This will provide a profit of Rs 8.4 crore in every quarter and Rs 33.60 crore in a year.

Swiggy first started charging platform fees in April 2023. During that time, customers were charged 2 rupees on every order. With time, the company started increasing it in view of the growing operational cost. However, it had no effect on the company’s order volume.

The company’s first quarter results

The company earned a profit of Rs 1,197 crore double more than the same quarter last year in the first quarter of 2026. It also got support from its Rapid Grocery Service-Instamart. During this period, the company’s operational revenue also increased to Rs 4,961 crore, which reflects its strong position in both food delivery and instant commerce segment.

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Rapido, known for bike taxi service, has now landed in the food delivery ground. The company has started this service by activating its 40 lakh rider network (almost zero additional expenses). Due to this, the alarm bell has been rang for legendary players like ZOMATO (now Eternal) and Swiggy.

ZOMATO and Swiggy’s earnings impact

According to Elara Securities report, if Rapido applies its plan correctly and extensively, it can damage the stable revenue models and profits of Zomato and Swiggy. Zomato and Swiggy have been doing food delivery for the last decade and now they have set a target of 5 percent adjustable Ebitda. But Rapido’s fast entry can shake this stability.

Direct collision with cheap commission structure

Rapido’s commission structure can create a stir in the market. While ZOMATO and Swiggy take 21-22 percent commission from the restaurant partners, Rapido will collect only 8-15 percent. Not only this, there will be a delivery fee of Rs 25 on orders less than Rs 400 and Rs 50 on orders of more than Rs 400. This service will start as a pilot project from Bengaluru.

Strong grip in rider network

Rapido has 40 lakh rider with 30–35 lakh daily rides. In comparison, Eternal (Zomato) has 4.4 lakh and Swiggy has 5.3 lakh riders. That is, Rapido is already in a very strong position in last-mile delivery.

One app, three tasks

Rapido’s plan is not just food delivery. Ride, parcel and food delivery will be merged through the same app. This will not only increase the earnings of riders, but will also reduce logistics expenses. The algorithm will decide which rider can, where and what to deliver so that it can earn more in the least distance.

What can be challenges?

Elara’s report also states that Rapido does not have a dedicated fleet for food delivery, which can affect the quality of orders with delivery (less than 30 minutes) in a short time. This is the reason that even new players like ONDC and Ola have not been able to move much further.

Can Rapido become a gamechanger?

However, if Rapido continuously shows better execution and scale performance, it can break the monopoly of zomato and swiggy. It has a compensation of cheap commission, tremendous network and technology and if all this works properly, then a new player may soon be seen ruling in the world of food delivery.

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