Online food delivery company Zomato has increased its platform fee by 20%. Now, a fee of Rs 12 will be charged on each order, which was previously Rs 10. The company, which delivers 2.3-2.5 million orders daily, expects to generate approximately Rs 45 crore in additional revenue per quarter from this increase.
Zomato Platform Fee Hike: Online food delivery platform Zomato has increased its platform fee by 20%. From now on, Rs 12 will be charged on every order, compared to the previous Rs 10. The company delivers about 2.3 to 2.5 million orders daily, and this increase is expected to generate around Rs 45 crore in additional revenue per quarter. In addition to the platform fee, customers will also have to pay delivery charges, restaurant fees, and GST. This move is aimed at boosting the company's profits before the festive season.
What is a Platform Fee and Why Has it Increased
The platform fee charged by Zomato is a type of service charge levied for using the company's platform. Users pay this fee on every order. The company introduced this fee in April 2023, when it was only Rs 2 per order. This fee has been revised multiple times in the last two years and now stands at Rs 12 per order. According to the company, this change was necessary for platform operations and service improvement.
According to a Moneycontrol report, Zomato delivers approximately 2.3 to 2.5 million orders daily across India. With the new platform fee, the company will generate revenue of around Rs 3 crore daily. Previously, it was about Rs 2.5 crore at Rs 10 per order. Experts estimate that this change could help Zomato earn an additional revenue of about Rs 45 crore each quarter.
Delivery Charges and Other Fees
Zomato charges its customers delivery fees in addition to the platform fee. Restaurant charges and GST are also included in the total bill of the order. For users, this means that the cost of each order has increased slightly. Another major food delivery company, Swiggy, also levies similar charges.
Rising Prices in the Online Food Delivery Industry
Online food delivery companies are continuously revising their service charges and platform fees, impacting customers' pockets. Companies are trying to maximize profits during the festive season and due to increasing demand. According to experts, an increase in platform fees has been common among many companies at the beginning of this year.
Customers have mixed reactions to this increase. Some are accepting it, considering it a small cost for the convenience of online food and time savings. However, some customers find it an expensive service and believe that paying higher fees on small orders can be burdensome.
Platform Fee Increased Before Festivals
The company has implemented this increase with the objective of boosting its profits and making the platform more profitable ahead of the festive season. Zomato believes that by increasing the platform fee, it can invest in its operations and technological advancements.
