Platform fee spikes in cities including National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow.
Zomato, the food delivery company, has raised the platform fee it charges customers by 25 percent to ₹5 per order starting from April 20, as reported by the Economic Times citing the app of the Gurugram-based firm.
As per the report, platform fees have increased in cities such as National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow.
On January 1st, the company previously raised the platform fee for users from ₹3 to ₹4. It’s worth noting that Swiggy, another delivery company headquartered in Bengaluru, also imposes a platform fee of ₹5 per order.
Mint couldn’t verify the report independently.
Food delivery apps impose this platform fee in addition to delivery charges. Even if a customer subscribes to Zomato Gold loyalty program, they are still required to pay the platform fees, although delivery charges are waived.
In August 2023, the food delivery company initiated the platform fee at ₹2 per order. Subsequently, in October, it was raised to ₹3, and in January, further increased to ₹4. Finally, in April, it escalated to ₹5.
Meanwhile, Blinkit, Zomato’s quick-commerce platform, imposes a handling charge of ₹2 on each order.
After introducing the platform fee in August, the food delivery company witnessed a significant surge in quarterly profits. For the October-December period, profits soared to ₹138 crore, compared to ₹36 crore in the preceding quarter. However, in the December quarter of FY23, the firm incurred a loss of ₹347 crore.
Among various factors, the firm’s consolidated operating revenue for Q3FY24 rose by 69 percent year-on-year (YoY) to ₹3,288 crore.
Zomato’s Evolution: From Intercity Deliveries to Legal Battles
Zomato, aiming to overhaul its Legends model, has reportedly halted its intercity delivery service due to legal issues.
Zomato introduced Legends in 2022, delivering food from specific restaurants in certain cities to another set of cities. In 2023, they modified the model to deliver pre-stocked items from different cities in a shorter time frame.
Nevertheless, Siddharth Jhawar, Zomato’s head of intercity delivery, resigned from the company three months after the launch of the intercity delivery service.
In 2024, a resident of Delhi filed a lawsuit against Zomato in a district court,
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