Zomato has raised its platform fee for food delivery to Rs 10 per order during the festive season, up from Rs 7 previously, as indicated on the company’s app.

A notification on the Zomato app stated that the increased platform fee helps cover operational costs and maintain services during the festive rush.

Zomato introduced the platform fee in 2023, starting at Rs 2 per order, and has gradually increased it. Swiggy, the first to implement this fee, has raised its platform fee to Rs 7 over time.

Following Zomato’s recent increase, Swiggy raised its platform fee to Rs 10 per order, up from Rs 7.

Platform fees are additional charges applied to each food order, separate from restaurant charges, delivery fees, and goods and services tax.

The platform fee of Rs 10 also attracts an 18% GST, meaning Zomato customers will pay Rs 11.80 per order, including tax.

Industry sources indicate that these platforms deliver 2-2.5 million food orders daily, and any increase in the platform fee boosts their revenue.

In response to inquiries about the fee hike, a Zomato spokesperson stated, “These are business calls we make based on various factors from time to time.”

Zomato reported a 68% year-over-year increase in operating revenue for the September quarter, reaching Rs 4,799 crore.

The rapidly expanding quick commerce business primarily drove the overall growth. At the same time, the food delivery segment, Zomato’s largest revenue contributor, saw a 21% year-over-year growth in gross order value, totaling Rs 9,690 crore.

Industry analysts believe that the increase in platform fees by food delivery companies is unlikely to affect consumer behaviour. In its annual report for fiscal 2024, Zomato stated it earned Rs 83 crore from platform fees during the year.

The festive season is generally viewed as a strong consumption period for food and grocery delivery platforms.

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