Zomato Hikes Platform Fee to ₹5 Per Order

New Delhi: Zomato has announced a 25% increase in its platform fee, raising it to Rs 5 per order from Rs 4 in select markets. The company attributes this adjustment to strategic business decisions.

Alongside this change, Zomato has temporarily suspended its intercity food delivery service, ‘Intercity Legends.’

This development precedes the imminent announcement of the company’s quarterly results for the period ending in March. Responding to queries, a Zomato spokesperson stated, “These decisions are based on various business considerations.”

Recent regulatory filings reveal that Zomato has faced tax demands totaling Rs 227.85 crore since mid-March. However, the company had reported a consolidated net profit of Rs 138 crore for the preceding quarter in February.

The platform fee hike primarily affects major cities such as Delhi-NCR, Bengaluru, Mumbai, and Hyderabad.

Zomato had initiated the platform fee last August at Rs 2 per order, gradually raising it over time. Notably, its competitor Swiggy already charges a platform fee of Rs 5 per order.

Zomato is set to disclose its fourth-quarter results (January-March) in the upcoming month, as per company sources.