Zomato increases platform fee by over 60% during the festive season, read the company’s message to customers on the fee hike – Times of India

Gurgaon-based food delivery giant Zomato has announced a temporary increase in its platform fee for users during the festive season. The fee has been hiked from Rs 6 to Rs 10 per order, which makes it an increase of over 60%. The information about the increase in the platform fee is popping up in the Zomato app when customers place an order.

What the message to Zomato customers says

In a notification to users, Zomato explained that the fee increase is necessary to cover operational costs and maintain services during the peak festive period.“This fee helps us pay our bills to keep Zomato running. To maintain services during the festive season, it has increased slightly,” says the notification on the Zomato app.
Zomato introduced the platform fee in 2023 and the company has gradually raised it over time.
Rival Swiggy too followed Zomato and introduced a platform fee in 2023. Swiggy too charges a platform fee of Rs 6.50 per order. Platform fees are additional charges levied on each food order, separate from GST, restaurant charges, and delivery fees.
Industry experts estimate that food delivery platforms in India handle between 2 and 2.5 million orders daily. An increase in the platform fee can significantly boost the companies’ revenue.