Zomato hikes platform fee for customers by 25% - Check details here

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₹5 per order, Economic Times quoted the Gurugram-based firm's app as saying. According to the report, the platform fee has surged in cities like National Capital Region, Bengaluru, Mumbai, Hyderabad and Lucknow. Earlier on 1 January, the firm had last increased the platform fee for users from ₹3 to ₹4.

It is to be known that, another delivery company Swiggy – based in Bengaluru – charges a platform fee of ₹5 on per order. Mint could not independently verify the report. This platform fee is being charged by the food delivery apps apart from the delivery charges. In case where a customer opts for Zomato Gold loyalty programme, he or she doesn't need to pay for the delivery charges, but still will have to pay the platform fees.

ALSO READ: Zomato delivery mix-up: Vegetarian customer receives non-veg momos during Navratri In August 2023, the food delivery firm began charging the platform fee with ₹2 per order. After some months, in October, they hiked it to ₹3 and in January it was hiked to ₹4. While in April, it was surged to ₹5.

Meanwhile, Zomato's quick-commerce platform Blinkit charges a handling charge of ₹2 on every order. Following the food delivery firm started charging the platform fee in August, its quarterly profits surged to new heights. The firm's quarterly profit for October-December period was ₹138 crore, compared to September quarter of ₹36 crore.

In FY 23 December quarter, the firm had to attain a loss of ₹347 crore. Among other things, the firm's operating revenue for Q3FY24 was 69 percent year-on-year (YoY) to ₹3,288 crore – on a consolidated bases. Aiming to revamp its model Legends, Zomato has suspended its intercity delivery service, added the report, saying it faced legal issues.