Zomato increase platform fee to Rs 5, suspends intercity food delivery

Following receiving a GST demand and penalty notice, Zomato increases its platform fee and suspends intercity delivery operations

   
zomato increase platform fee

Online food delivery platform Zomato has hiked its platform fee by 25 per cent to Rs 5 per order. Zomato introduced a platform fee of Rs 2 in August last year and later increased it to Rs 3 to improve its margins and become profitable.

Buoyed by record food orders on New Year’s Eve, the food delivery platform in January increased its mandatory platform fee to Rs 4 from Rs 3 per order across key markets.

The new platform fee is levied on all customers, including Zomato Gold.

Meanwhile, the company has suspended Intercity Legends, its inter-city food delivery service.

“Enhancements are underway. Please stay tuned as we will be back to serve you soon,” read the message on the ‘Legends’ tab on the Zomato app.

Last week, Zomato received a goods and services tax (GST) demand and penalty order worth Rs 11.81 crore. The order consists of Rs 5.9 crore in GST demand and a penalty of Rs 5.9 crore for the July 2017-March 2021 period.

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