Zomato Increases Platform Fee to Rs 5 and Suspends Intercity Delivery Services

Zomato, a well-known food delivery platform, has recently implemented a 25% hike in its platform fee, setting it at Rs 5 per order. This adjustment affects customers in major metropolitan areas such as Delhi-NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow. The platform fee is an additional charge per order, distinct from the delivery fee, aiming to generate higher revenue for Zomato.

Introduced in August 2023 at Rs 2 per order, Zomato gradually escalated the platform fee to Rs 3 in October, followed by an increase to Rs 4 on January 1 this year. The latest raise to Rs 5 per order places Zomato on par with its main competitor, Swiggy, which already charges a platform fee of Rs 5 per order and in some cases even Rs 10.

The platform fee is a fixed fee applied to each order irrespective of the order value. In addition to this fee, Zomato also levies a delivery fee; however, members of their Zomato Gold loyalty program are exempt from the delivery fee but are subject to the platform fee. Zomato Gold provides benefits such as discounts and free delivery to its members.

Zomato’s decision to increase the platform fee aims to enhance its revenue streams, leveraging the high volume of daily orders processed through its platform. This fee hike comes as part of a series of incremental increments, starting from Rs 2 and progressing to Rs 3 and Rs 4 before reaching the current Rs 5 mark.