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Zomato Increases Platform Fee by 25% and Suspends Intercity Deliveries

zomato

Zomato, the popular online food delivery platform, has recently made significant changes to its services. Here are the key developments:

  1. Platform Fee Hike in Zomato:

    • Zomato has raised its platform fee for users by 25%, bringing it to Rs 5 per order.
    • This increase affects customers in major cities such as Delhi, Bengaluru, Mumbai, Hyderabad, and Lucknow.
    • Notably, this is a continuation of Zomato’s previous fee hikes, which started at Rs 2 and gradually increased to Rs 3 and then Rs 4 in recent months.
  2. Intercity Deliveries Paused:

    • Zomato has suspended its intercity delivery service called Intercity Legends.
    • The decision to discontinue this service comes amidst other challenges, including tax demands and penalties from authorities2.

These changes come at a time when the company is gearing up to announce its financial results for the March quarter. The company’s strategic moves aim to balance operational costs, enhance user experience, and navigate regulatory complexities.

The platform fee is separate from delivery charges, though Zomato Gold loyalty program waives delivery fees for a subscription fee. However, the platform fee applies even to Gold members.

Zomato’s main competitor, Swiggy, also charges a platform fee of Rs 5 per order. Zomato first introduced this fee in August 2023 at a lower rate, gradually raising it to the current level.

Users can expect to see the revised platform fee reflected in their orders, while the pause on intercity deliveries may impact those who relied on this service for cross-city food delivery.

As the food delivery industry continues to evolve, Zomato’s adjustments demonstrate its commitment to adapt and thrive in a competitive landscape.

Stay tuned for further updates 🍔🚚

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