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Zomato increases platform fees for customers by 25%: How expensive will your orders be?

Vaseline 2 months ago

Zomato has increased its platform fees for customers by 25 percent. This means that every order placed with the food delivery company has a platform fee of € 5 per order. While platform charges for Zomato customers have increased in National Capital Region, Bengaluru, Mumbai, Hyderabad and Lucknow. This comes after the company increased platform fees for users 3 to 4 in January this year. Swiggy already charges a platform fee of 5 on per order.

Zomato Platform Fees: The logo of Indian food delivery company Zomato can be seen on the app displayed on a mobile phone.  (Reuters)
Zomato Platform Fees: The logo of Indian food delivery company Zomato can be seen on the app displayed on a mobile phone. (Reuters)

Platform fees are charged by Zomato apart from the delivery charges. If you opt for the Zomato Gold loyalty program, you won’t have to pay any delivery charges, but you will have to pay the platform charges.

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In August 2023, Zomato started charging the platform fees 2 per order, increased to 3 in October 2023 and then to 4 in January this year. Zomato’s quick commerce platform Blinkit also charges an administration fee of 2 with every order.

Zomato’s quarterly profit for the October-December period was 138 crores. In the December 23 quarter, the company had to post a loss of 347 crore, while operating revenue for Q3FY24 was 69 percent year-on-year (year-on-year) 3,288 million.

Zomato has also suspended its intercity delivery service amid legal issues. Zomato’s Legends was launched in 2022 and aimed to deliver food from select restaurants in a few cities to another set of cities. In 2023, Zomato started delivering pre-stocked items from other cities in less time.