Zomato increases platform fee by 25% to Rs 5 per order

22 Apr 2024 , 03:49 PM

Zomato, a prominent food delivery platform, has raised its platform fee by 25% to ₹5 per order, impacting customers in major cities like Delhi-NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow.

The platform fee, introduced at ₹2 per order in August 2023, increased to ₹3 in October and then to ₹4 on January 1 this year.

Swiggy, Zomato’s main competitor, already charges ₹5 as a platform fee, with reports suggesting fees of up to ₹10 for certain customers. The platform fee is a fixed charge applied to every order, separate from the delivery fee, and remains applicable to Zomato Gold members despite their benefits.

Zomato aims to boost its revenue with this fee hike, leveraging the high volume of daily orders.

Besides fee adjustments, Zomato is revamping its intercity delivery service, Legends, introduced in 2022 for next-day food delivery from specific cities, which faced legal issues due to delivery method changes and pre-stocked items.

Plans to expand Legends to longer-distance intra-city deliveries and international markets are currently on hold, following the departure of the service’s head and a lawsuit from dissatisfied customers. Zomato is undertaking significant changes in fees and services to sustain growth and enhance customer satisfaction.

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