Zomato Raises Platform Fee to Rs 10 per Order During Festive Season

Zomato Raises Platform Fee to Rs 10 per Order During Festive Season

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Zomato Increases Platform Fee Amid Festive Rush

As India heads into its festive season, food delivery giant Zomato has increased the platform fee it charges users to Rs 10 per order, up from Rs 7 previously. This fee was first introduced by the company in 2023 as a Rs 2 per order levy and has since seen multiple hikes. According to a notification on Zomato's app, the increment is necessary to cover the rising costs associated with operating during the high-demand festive season.



“This fee helps us pay our bills to keep Zomato running. To maintain services during festive rush, it has increased slightly,” the app’s notification read. Zomato, headquartered in Gurgaon, is a major player in India's competitive food delivery sector.

The platform fee is an additional charge imposed on customers for each food order placed via the Zomato app. It is applied separately from restaurant charges, delivery fees, and goods and services tax (GST). The latest hike comes during a period when consumption patterns surge, with more customers ordering food online during festivals and holidays.

Breakdown of the New Fee

While the new platform fee is set at Rs 10 per order, this does not include GST of 18%. Consequently, Zomato customers will effectively pay Rs 11.80 on every order as a total platform fee inclusive of tax.

For customers, the platform fee adds an extra layer of cost, but industry analysts suggest that the marginal increase is unlikely to deter consumer behavior. With millions of users relying on food delivery services during the festive period, this nominal increase could generate substantial additional revenue for Zomato.

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