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Zomato hikes platform fee for users; pauses these deliveries – The Times of India

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Food delivery platform Zomato has increased its customer fees by 25%. With this, the platform fee now stands at Rs 5 per order. This change applies to major cities like Delhi-NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow. Zomato started levying platform fee in August 2023. Initially, it was Rs 2 per order, and in October, the company increased the charge to Rs 3 in most of its major markets.
Zomato had last increased the platform fee for users on January 1 to Rs 4 from Rs 3.The company’s main rival, Bengaluru-based Swiggy, charges a platform fee of Rs 5 on food-delivery orders. There have been reports that Swiggy has been showing platform fee of Rs 10 to some users.
What is platform fee on Zomato and Swiggy
The platform fee is a per-order flat charge levied on all orders. Zomato levies the platform fee in addition to a delivery charge, which is waived for customers of its Zomato Gold loyalty programme. The Zomato Gold loyalty programme is a paid membership and its customers make an upfront payment. The benefits include discounts and free delivery. The platform fee is applicable to Zomato Gold members as well.
Zomato hopes this fee increase will boost earnings. With millions of daily orders, even a small bump in per-order charges can significantly impact the company’s bottom line. This move follows Zomato’s previous fee hikes from Rs 2 to Rs 3 and then to Rs 4 in recent months.
Zomato pauses Zomato Legends, its intercity deliveries
Zomato is also making changes to its intercity delivery service, Legends. The service, launched in 2022, initially offered next-day delivery of restaurant food from specific cities. However, it failed to gain traction and faced legal challenges due to a shift in its model to pre-stocked items for faster delivery.
Zomato is revamping Legends to address these issues. The original plan envisioned a multi-phase rollout, including longer-distance deliveries within cities and even international options. However, these plans have been put on hold.
Zomato’s intercity delivery head resigned shortly after launch, and a customer lawsuit is ongoing regarding the service’s advertised features.

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