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Here's why ordering food from Zomato will get expensive soon

Zomato, a leading food delivery platform, has raised its platform fee by 25%, reaching Rs 5 per order. This alteration affects customers in major cities such as Delhi-NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow. 

Here is why ordering food from Zomato will get expensive soon gcw
First Published Apr 26, 2024, 5:56 PM IST

Zomato, an online meal delivery service, has informed subscribers that its platform charge would increase by 25%. Customers will now be charged Rs 5 for each order, effective immediately. This is a huge increase from the previous cost structure. Zomato first introduced the platform fee in August 2023, with a beginning price of just Rs 2 per order. But in an attempt to boost margins and turn a profit a few months later in October, the business quickly raised the charge to Rs 3. In January of this year, it went up to Rs 4.

The increase to Rs 5 that occurred recently is the third one in a short period of time. Important markets like Delhi NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow are subject to this platform cost. However, Blinkit, Zomato's quick-commerce platform, has added a processing fee of Rs 2 to every order.

Zomato is not the only company imposing these fees. Similar to its rival Swiggy, it charges a Rs 5 platform fee for food delivery orders. However, there have been allegations circulating indicating that some Swiggy users would be charged a Rs 10 platform fee.

The platform fee is a one-time, fixed-cost per order that is charged for all Zomato transactions. Zomato charges a delivery fee in addition to this price, albeit members of its Zomato Gold loyalty program are exempt from this cost. Customers who sign up for Zomato Gold, a premium membership club, pay in advance to receive exclusive offers like free delivery and discounts. It is noteworthy that the platform cost applies to Zomato Gold users as well.

Zomato hopes to increase company profits by making this decision. Even a little increase in per-order fees might have a significant positive impact on the company's financial stability given the millions of orders it processes every day.

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