Zomato has increased the platform fee it charges users for food delivery to Rs 10 per order during the festive season from Rs 7 earlier, according to information on the Gurgaon-based company’s app. “This fee helps us pay our bills to keep Zomato running. To maintain services during festive rush, it has increased slightly,” a notification on the app said.
Zomato introduced the platform fee in 2023, as a Rs 2 per order flat levy, and has subsequently increased it over time. Its Bengaluru-based rival Swiggy, which was the first to start charging this levy, has also raised the fee over time to Rs 7. Platform fees are additional charges applied to each food order, separate from restaurant charges, delivery fees and goods and services tax. To be sure, the platform fee also attracts GST of 18%, which is not included in the Rs 10 levy.
This means Zomato’s customers will pay Rs 11.80 on every order as platform fee inclusive of tax. Deepinder Goyal-led Zomato reported its September-quarter results on Tuesday, clocking a 68% year-on-year jump in its operating revenue to Rs 4,799 crore. The festive season is typically considered to be a strong consumption period for food and grocery delivery platforms. At noon Wednesday, Zomato’s stock was trading 1.8% up at Rs 260.80 on the BSE.