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Zomato increases platform fees for customers by 25% – View details here

Food delivery company Zomato has increased the platform fee – which it charges to its customers – by 25 percent to 5 per order, Economic times quoted the Gurugram-based company’s app.

According to the report, platform costs have skyrocketed in cities like National Capital Region, Bengaluru, Mumbai, Hyderabad and Lucknow.

Earlier on January 1, the company had last increased the platform fee for users 3 to 4. Another delivery company Swiggy – based in Bengaluru – is known to charge a platform fee of 5 on per order.

Mint could not independently verify the report.

These platform fees are charged by the food delivery apps apart from the delivery charges. If a customer opts for the Zomato Gold loyalty program, he or she will not have to pay the delivery charges but will still have to pay the platform charges.

READ ALSO: Zomato Delivery Mix: Vegetarian customers will receive non-vegetarian momos during Navratri

In August 2023, the food delivery company started charging the platform fees 2 per order. After a few months, in October, they walked there 3 and in January they walked there 4. While it was increased in April 5.

Meanwhile, Zomato’s quick commerce platform Blinkit charges an administration fee of 2 with every order.

After the food delivery company started charging platform fees in August, quarterly profits soared to new heights. The company’s quarterly profit for the October-December period was 138 crore, compared to the September quarter 36 crores. In the December 23 quarter, the company had to post a loss of 347 crore.

The company’s operating revenue for the third quarter of 24 included 69 percent year-over-year (YoY). 3,288 crore – on a consolidated basis.

Intercity deliveries:

Aiming to revamp its Legends model, Zomato has suspended its intercity delivery service, the report added, saying it was facing legal issues.

Zomato’s Legends was launched in 2022 where they delivered food from select restaurants in a few cities to another selected set of cities. Later, they made some changes to the model in 2023 where they started delivering pre-stocked items from other cities in less time.

However, Zomato’s intercity delivery head Siddharth Jhawar resigned from the company after three months of launching the intercity delivery service.

A Delhi resident filed a lawsuit against Zomato in a district court in 2024, alleging that Zomato had supplied pre-stocked items from nearby warehouses.

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Published: Apr 21, 2024 10:40 PM IST