Zomato Rolls Out Long-Distance Charges and Visibility Plan to Enhance Restaurant Margins

Zomato, through its parent firm Eternal, has introduced a new fee structure for restaurants to improve margins on deliveries. A 'long-distance fee' of ₹20 per order will apply for deliveries between 4-6 km when the order value exceeds ₹150, as per a Moneycontrol report. 

For deliveries beyond 6 km, this charge doubles to ₹40. Smaller orders under ₹150 won't attract any extra charges if delivered within 6 km, but will incur ₹40 per order if the distance exceeds that. This fee, earlier non-existent, is aimed at ensuring mutual profitability for both Zomato and its partner restaurants.

Visibility Assurance Plan and Priority Rider Allocation

Eternal has also launched a visibility assurance initiative that enables restaurant brands to pay ₹6,000-₹6,500 per restaurant ID monthly to secure better visibility and priority rider allocation. This is expected to accelerate order processing and improve customer satisfaction. 

The scheme is being gradually introduced to partners in phases and is seen as a strategic move to enhance rider retention while offering participating restaurants a competitive edge.

Strategic Intent Amidst Industry Competition

Amid modest food delivery growth of 15-20% year-on-year, Zomato is exploring new strategies to boost profitability and strengthen its market position. The new pricing and visibility measures come as the company anticipates rising competition, including potential entries by players like Rapido. 

While these costs are being borne by restaurants, customers will not see any immediate change in delivery fees. Zomato Gold members will continue receiving benefits as per their existing plan terms.

Read More: India's Quick Commerce TAM Expected to Reach $57 Billion by 2030!

Eternal Share Price Performance 

As of June 10, 2025, at 10:40 PM, Eternal share price is trading at ₹253.09 per share, reflecting a decline of 1.46% from the previous day's closing price. Over the past month, the stock has surged by 5.67%. The stock's 52-week high stands at ₹264 per share, while its low is ₹209.86 per share.

Conclusion

Zomato’s revised fee structure and visibility plan reflect a clear shift towards improving profitability and operational efficiency in a competitive market. By placing strategic costs on partner restaurants and introducing performance-linked benefits, the company aims to enhance delivery margins, retain riders, and offer a differentiated service experience without impacting end-user pricing in the short term.

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