Zomato, a leading food delivery platform, has raised its platform fee by 25% to Rs 5 per order starting from April 20, according to the information available on the Zomato app. The platform fee, a flat charge per order, has been increased across key markets such as the NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow.
This came after Zomato last increased the platform fee on January 1, raising it from Rs 3 to Rs 4 per order. The recent hike to Rs 5 is expected to contribute significantly to the company’s earnings, given its daily order volume ranging from 2.0 to 2.2 million orders.
Zomato’s main competitor, Swiggy, also charges a platform fee of Rs 5 on food delivery orders. The platform fee is in addition to the delivery charge, which is waived for customers enrolled in Zomato Gold, the company’s loyalty program offering benefits like discounts and free delivery.
Notably, Zomato’s quick-commerce platform, Blinkit, charges a handling fee of Rs 2 on every order.
The increase in platform fees could help Zomato offset financial challenges, including a substantial tax demand exceeding Rs 402 crore from goods and services tax authorities.
Zomato has suspended its intercity delivery service called Legends. Launched in 2022, Legends aimed to deliver food from select restaurants across cities but later shifted focus to delivering pre-stocked items with shorter delivery timelines. However, the service did not gain significant traction among consumers and faced legal issues.
The revamping of Legends follows Zomato’s recent quarterly financial performance, reporting a third consecutive profit of Rs 138 crore for the October-December period. The company’s operating revenue during the same quarter grew by 69% year-on-year to Rs 3,288 crore.
Despite these operational changes and financial adjustments, Zomato continues to face challenges such as legal disputes and evolving consumer preferences, shaping its strategies in the competitive food delivery and quick-commerce landscape.