{"id":31928,"date":"2024-04-21T11:56:01","date_gmt":"2024-04-21T11:56:01","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/21\/zomato-hikes-platform-fee-for-users-to-rs-5-pauses-intercity-deliveries\/"},"modified":"2024-04-21T11:56:01","modified_gmt":"2024-04-21T11:56:01","slug":"zomato-hikes-platform-fee-for-users-to-rs-5-pauses-intercity-deliveries","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/21\/zomato-hikes-platform-fee-for-users-to-rs-5-pauses-intercity-deliveries\/","title":{"rendered":"Zomato hikes platform fee for users to Rs 5; pauses intercity deliveries"},"content":{"rendered":"
\"Zomato<\/div>


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Zomato<\/a> has increased the platform fee<\/a> it levies on customers for food delivery<\/a> by 25% to Rs 5 per order effective April 20, according to information on the Gurugram-based company’s app and people in the know.
The platform fee \u2014a per-order flat charge \u2014 has been increased in Zomato’s key markets including the National Capital Region, Bengaluru, Mumbai, Hyderabad and Lucknow.<\/p>\n
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According to one of the people, Zomato services 2.0-2.2 million orders<\/a> per day, and an increase of Re 1 for a large order base could add substantially to the company\u2019s earnings over a quarter.<\/p>\n

Zomato<\/a> had last increased the platform fee for users on January 1 to Rs 4 from Rs 3. ET was the first to report<\/a> this development.<\/p>\n

Zomato did not respond to queries emailed by ET.<\/p>\n

The company\u2019s chief rival, Bengaluru-based Swiggy, charges a platform fee of Rs 5 on food-delivery orders.<\/p>\n

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Zomato levies the platform fee in addition to a delivery charge, which is waived for customers of its Zomato Gold loyalty programme, who make an upfront payment and get benefits such as discounts and free delivery. The platform fee is applicable to Zomato Gold members as well.The listed firm started levying this fee in August 2023. Initially, it was Rs 2 per order, and in October, the company increased the charge to Rs 3 in most of its major markets.<\/p>\n

Zomato\u2019s quick-commerce platform Blinkit<\/a> levies a handling charge of Rs 2 on every order.<\/p>\n

Also read | <\/strong>Swiggy teases increased platform fee of Rs 10 to select users<\/a><\/p>\n

After Zomato increased the platform fee in January, analysts had said it could help the company offset the massive tax demand \u2014 more than Rs 402 crore \u2014 it faces from goods and services tax authorities.<\/p>\n

The company reported its third consecutive quarterly profit \u2014 Rs 138 crore \u2014 for the October-December period, compared with a Rs 36 crore profit in the September quarter and a Rs 347 crore loss in the three-month period ended December 2022.<\/p>\n

Zomato’s operating revenue for the December quarter, on a consolidated basis, grew 69% year-on-year to Rs 3,288 crore.<\/p>\n

Intercity<\/a> deliveries<\/strong><\/p>\n

Zomato has suspended its intercity delivery service<\/a>, Legends, as it looks to revamp its model. In its latest avatar, Legends did not see a significant traction among consumers, people aware of the matter said. It also faced legal issues.<\/p>\n

The service, which was launched in 2022, initially saw delivery of food happen from select restaurants in certain cities to a specific set of cities. Zomato tweaked the model last year to deliver pre-stocked items from other cities with a shorter delivery timeline.<\/p>\n

\u201cThe initial model where food was delivered the next day \u2026 did not solve a problem for customers as it was initially imagined. The feedback received by the company was that it did not address immediate hunger pangs \u2026 which is why the model was reworked to pre-stock popular items,\u201d one of the people cited earlier said.<\/p>\n

Another person said the initial plan for Legends was multi-phased, where after intercity deliveries, the company was also planning to deliver from longer distances within the same city, and even offer international deliveries to short-haul destinations with Indian diaspora, such as the Middle East and southeast Asia.<\/p>\n

But this plan never took off.<\/p>\n

Barely three months after the intercity delivery service was launched, Zomato’s head of intercity delivery, Siddharth Jhawar, resigned from the company.<\/p>\n

Earlier this year, a New Delhi-resident filed a case against Zomato in a district court challenging the company’s promise of delivery from renowned restaurants in other cities, when it was actually delivering pre-stocked items from nearby warehouses.<\/p>\n

The matter is still in court.<\/p>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Zomato has increased the platform fee it levies on customers for food delivery by 25% to Rs 5 per order effective April 20, according to information on the Gurugram-based company’s app and people in the know.The platform fee \u2014a per-order flat charge \u2014 has been increased in Zomato’s key markets including the National Capital Region, […]<\/p>\n","protected":false},"author":2,"featured_media":31929,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/88591548.cms","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[3668,1984,15352,4754,5397,35866,5606,21702,4699,35865,5807,712,4206,35864],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/31928"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=31928"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/31928\/revisions"}],"predecessor-version":[{"id":31930,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/31928\/revisions\/31930"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/31929"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=31928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=31928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=31928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}