Rising platform fees stress Indian consumers in the convenience economy.
Indian consumers are increasingly facing higher costs in the convenience economy, as platform fees and surcharges add up on services like food delivery and quick commerce. According to Inc42, these fees, initially minimal, have surged by 500-700% on platforms like Zomato and Swiggy since August 2023, reaching ₹14.9 and ₹17.58 respectively as of March 2026.
The added charges impact even paid subscribers, who still pay platform fees, packaging charges, and GST. Quick commerce platforms like Blinkit impose “small cart fees” on orders below ₹99, while others add shadow fees alongside standard delivery charges. This trend extends to other sectors, with BookMyShow adding “convenience fees” on tickets and Urban Company levying service charges.
A 2025 LocalCircles survey indicated that 50% of users encounter these fees on most online purchases, with 90% desiring platforms without them. This has led to platform fees becoming a new revenue stream, potentially reaching ₹6,000-8,000 crore annually across various platforms. According to Aravind Sanka, founder of Rapido, platforms are shifting costs from restaurants to users through increased menu prices, as discounts are reduced to chase profitability.
Analysts suggest that consumers may need to absorb some of these costs, or prices will continue to rise. Marketplaces are adapting platform fees, like Amazon’s ₹5 fee, to sustain low seller fees while passing costs to consumers. The Competition Commission of India is now examining pricing policies and market dominance in the consumer services and e-commerce sectors, while alternatives like ONDC aim for more transparent digital commerce.
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