Zomato to charge rain fee for Gold members from May 16

Zomato has ended the rain fee waiver for its Gold members, effective May 16, 2025.

The decision aims to ensure fair compensation for delivery partners working during rainy conditions.

Gold members, over 2 million in number, were previously exempt from the rain surge fee, which ranges from 10 rupee (US$0.12) to 15 rupee (US$0.18) for other users.

The change comes after Zomato’s parent company, Eternal, reported slower growth in the food delivery segment.

The report cited reduced urban demand, fewer available delivery partners, and the rising popularity of quick commerce services.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Food delivery platforms globally pivoting from growth to profitability

Zomato’s removal of the rain fee waiver for Gold members reflects a broader industry shift happening across global food delivery platforms.

Major food delivery companies collectively generated $345 billion in gross transaction value in 2023, but many have struggled with profitability, pushing them to reevaluate customer perks and pricing models 1.

This strategic pivot is visible in recent quarterly results where the five largest global delivery platforms all reported positive EBITDA for the first time, marking a potential turning point for an industry that prioritized expansion over sustainable operations for years 1.

The move demonstrates how Zomato is following the industry trajectory of balancing delivery partner compensation, which increases during adverse weather conditions, with the need to improve margins, especially as the company noted slower growth in its food delivery business in recent results.

This readjustment signals a maturing market where companies must make difficult decisions about which premium features can be sustainably offered in their subscription programs.

2️⃣ Companies tightening customer loyalty perks across sectors

Zomato’s decision mirrors a broader trend of businesses scaling back customer rewards programs to improve financial performance.

Major companies across sectors have been reducing benefits that were previously standard in their loyalty programs, from airlines increasing mileage requirements for elite status to retailers shortening return windows from 90 to 30 days 2.