India’s convenience economy is becoming increasingly costly for consumers, as platform fees and surcharges continue to rise across popular delivery and quick commerce apps. This trend is evident in the practices of major players like Zomato and Swiggy, where platform fees have surged from ₹2 in August 2023 to ₹14.9 on Zomato and ₹17.58 on Swiggy by March 2026. These fees, along with packaging charges and GST, are levied even on subscribers of premium services like Zomato Gold and Swiggy One.
The proliferation of these charges is not limited to food delivery. Quick commerce platforms such as Blinkit impose additional fees on small orders, while services like BookMyShow, Urban Company, and ride-sharing apps like Uber and Ola have adopted similar strategies. This shift towards platform fees reflects a broader industry norm, impacting over 500 million digital consumers in India and generating substantial revenue for these platforms.
The push for profitability is a key driver behind this trend. As platforms reduce or eliminate seller commissions to attract and retain partners, they turn to platform fees to maintain revenue. This shift is reshaping the financial landscape for digital services, with an estimated ₹6,000-8,000 crore being generated annually through these fees. The impact is significant, with a 2025 LocalCircles survey revealing that half of online consumers face these charges regularly, and 90% express a desire for platforms without such fees.
The growing reliance on platform fees has sparked consumer frustration and regulatory scrutiny. The Competition Commission of India is investigating pricing policies and market dominance, while initiatives like the Open Network for Digital Commerce (ONDC) aim to promote transparency and fair practices. Despite these efforts, the convenience tax appears to be a lasting feature of the digital economy, particularly in urban areas where app-based services are deeply ingrained in daily life.
As new entrants like Rapido’s Ownly experiment with alternative fee structures, the question remains whether these models can succeed at scale. For now, the convenience tax continues to be a significant factor in the evolving landscape of India’s digital economy. With platforms increasingly relying on these fees to balance costs and pursue profitability, consumers may need to adjust to a new norm of higher prices for the convenience they value.
