The rising cost of convenience: How hidden fees are reshaping food delivery economics

What once cost ?200 on a food app can now touch ?300 or more, not because consumers are ordering extra, but because of a growing stack of hidden charges. Rain surcharges, late-night delivery fees, packaging costs, platform charges, GST, and even “small cart” penalties are quietly inflating bills. For many, the promise of affordable convenience now feels less straightforward and far more expensive.

Even as consumers shoulder these rising costs, quick commerce platforms are pushing aggressively into monetisation. Zepto, Blinkit, and Swiggy Instamart have raised ad rates by 25–35% across categories such as FMCG and home essentials ahead of the festive season, with premium slots in metros climbing by nearly 50%.

Sponsored listings and homepage banners now demand monthly spends of ?2–7.5 lakh, turning digital shelf space into high-stakes real estate for brands. Industry estimates project Q-comm ad revenues to rise from ?3,000 crore in 2024 to over ?5,000 crore by the end of 2025, making it one of the fastest-growing segments in India’s digital ad market.

Food delivery has long been marketed as convenient, but recent fee hikes are making it more expensive for customers. Since August 2023, Zomato has gradually raised its platform fee from an initial ?2 per order to as high as ?12 during peak holiday seasons. Swiggy, too, has charged up to ?14 during festive demand. While these micro-fees don’t look significant on their own, frequent users are finding that the impact on monthly budgets is substantial, even for those paying for loyalty programs. For the platforms, however, millions of daily orders mean these charges translate into a critical boost in revenues and profitability, especially when operating costs rise.

But while platforms gain, consumers are increasingly questioning the real cost of convenience. Alok Chawla, founder of food delivery app Tabe, says, “The discount given at the end just about covers these charges, and the customer is actually no longer getting a discount they think they are getting.” As cart values swell, he adds, “Consumers are exploring alternatives such as ONDC-based apps or new entrants like Tabe that advertise transparent pricing.”

Mandar Lande, Co-founder of Waayu, echoes this sentiment. “When the base price looks attractive but balloons at checkout, the psychological effect is that of being tricked,” he says. He believes bundling costs upfront under simple and empathetic language is the way forward. “A ‘no hidden charges’ or ‘all-inclusive pricing’ model resonates with today’s consumer who is fatigued by constant mark-ups.”

Brand consultant Nisha Sampath points out that inconsistency in pricing deepens the trust deficit. “What brands think is smart pricing, consumers may find to be fraudulent or a rip-off,” she says. Drawing comparisons with offline retail, she adds that stores like DMart command loyalty precisely because there are no hidden charges at checkout, whereas on Q-comm, “consumers stay transactional and compare prices, choosing the cheapest deal they can get.”

Business strategist Lloyd Mathias frames this as part of the sector’s natural evolution. “Incorporating these smaller charges is a way to boost revenue,” he explains, while noting that convenience has become addictive for many urban Indians. He believes that while some consumers will adapt by consolidating orders or opting for premium memberships, others may shift back to offline shopping or explore smaller, transparent delivery models.

Amidst this debate, regulators are beginning to take notice. The Competition Commission of India (CCI) is reviewing pricing practices in the sector, including allegations of predatory pricing and misuse of FDI norms.

With new competitors offering all-inclusive models and regulatory scrutiny rising, the question is no longer just about how quickly platforms can deliver, but whether they can do so without eroding consumer trust. As Sampath cautions, “The real battle is not for transactions but for long-term consumer loyalty.”