Zomato, the food delivery app has increased its platform fee by almost 60%. It increases from Rs 7 to Rs 10 as the festive season approaches. As per Zomato, the fees help the company keep its service running. The company said, “This fee to pay your bills to keep Zomato running, and to maintain services during the festive season has increased slightly.”
Well, this would be quite shocking for the customers. The platform fee journey for Zomato started in August 2023 when they introduced a small fee of Rs 2. Since then they have gradually increased it over time, you might remember that on December 31, they even temporarily raised it to Rs 9 during the New Year’s rush.
Impact Of Platform Fee On Customers
As a customer, you will now pay Rs 3 more on each order, compared to Rs 7, that you were paying before. While it might seem small, it adds up if you order frequently. However, the fee applies to all orders, regardless of the order value whether you are ordering a simple burger or fries, or even a feast for the family.
The Challenges Faced By Zomato
This might seem like a little increase in an amount but it could mean a big business for Zomato. Given their impressive order value of Rs 64.7 crore orders in the financial year 2023. This tiny increase could potentially bring an extra to their revenue. The timing of this increase is interesting as Zomato recently faced some tax-related challenges. They received GST demand and penalty order words Rs 11.81 crore. This order was small; it included Rs 5.9 crore in GST demand and an amount of penalty covering the period of July 2017 to March 2021.
This increase comes at a time when food delivery services typically see a surge in orders due to festivals. Zomato’s decision to raise the fee during this period suggests that they are preparing for something really big. Maybe a big order volume or aiming to maintain their service quality when in demand.
The move shows how delivery platforms are working to balance their operational cost with service costs. During high-demand periods, when people rely on the service apps for celebrations and gatherings, Zomato will get extra revenue in their pocket.
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