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| IMAGE SOURCE BY- BUSINESS TODAY |
New Delhi, India – Ordering food online through the popular food delivery platform Zomato is set to become pricier, as the company has announced a 25 percent hike in its platform fees. Effective immediately, customers will now incur an additional five rupees charge for each order placed on the platform, up from the previous fee of Rs. 4.
Zomato first introduced platform fees in August last year, initially pegged at Rs. 2 per order. Since then, the company has incrementally increased these fees, with the latest hike bringing the charge to Rs. 5 per order. Notably, the surge in food orders during New Year's Eve prompted Zomato to raise the mandatory platform fee in key markets from Rs. 3 to Rs. 4 in January.
These platform fees are levied on top of delivery charges, effectively adding to the overall cost of ordering food online. However, Zomato Gold members, who enjoy benefits such as free deliveries, are not exempt from platform fees. Additionally, Zomato's direct-commerce platform, Ehsakshashashin, imposes a minimum handling charge of Rs. 2 on each order.
With Zomato processing an average of 20 to 22 lakh orders daily, the incremental increase of one rupee in platform fees per order is expected to significantly boost the company's daily revenue. Previous instances of fee hikes have demonstrated a direct correlation between increased fees and revenue growth for Zomato.
Zomato's primary competitor, Jooshallu, also imposes a similar platform fee of Rs. 5 per order.