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Zomato hikes platform fee for users to Rs 5; pauses intercity deliveries

Economic Times

Economic Times · 1y ago

Zomato hikes platform fee for users to Rs 5; pauses intercity deliveries

Food delivery platform Zomato has increased its platform fee for customers by 25% to Rs 5 per order, effective April 20. The fee increase, applicable in key markets including Delhi, Bengaluru, Mumbai, and Hyderabad, is expected to boost the company's earnings. Zomato's rival, Swiggy, already charges Rs 5 as a platform fee on food delivery orders. Zomato's platform fee is in addition to the delivery charge, but it is waived for Zomato Gold loyalty programme members. The fee was initially introduced in August 2023 at Rs 2 per order and was increased to Rs 4 earlier this year. The intercity delivery service, Legends, has been temporarily suspended by Zomato due to low consumer traction and legal issues.

Related News

Magicpin slashes platform fee to Rs 5 per delivery

Economic Times

Economic Times · 8m ago

Magicpin slashes platform fee to Rs 5 per delivery

Magicpin, a hyperlocal ecommerce app, has reduced its platform charges for deliveries to Rs 5 per delivery, which is half the fee set by its competitors. This move comes shortly after Zomato and Swiggy increased their platform fees for deliveries by a significant margin. Magicpin's founder and CEO, Anshoo Sharma, announced the reduction on social media, stating that it would be applicable for the rest of the year and that there would be no fee hike on food delivery in 2024. This decision has resulted in a significant increase in orders for Magicpin during the festive season.

Zomato Hikes Platform Fee To INR 5, Shares Jump 4%

Inc42 · 1y ago

Zomato Hikes Platform Fee To INR 5, Shares Jump 4%

Foodtech giant Zomato has increased its platform fee by 25% to INR 5 per order in key markets, including Delhi, Bangalore, Mumbai, Hyderabad, and Lucknow. The move is expected to boost the company's earnings as it handles around 2-2.2 million orders per day. Additionally, Zomato has temporarily suspended its intercity delivery service, Intercity Legends, for enhancements. The company has been focusing on profitability, with its profit after tax reaching INR 138 crore in the December quarter of the financial year 2023-24. Recently, Zomato also introduced an all-electric 'large order fleet' for delivering orders for up to 50 people in one go.

Zomato pilots priority deliveries, tests ‘pay later’ feature

Economic Times

Economic Times · 1y ago

Zomato pilots priority deliveries, tests ‘pay later’ feature

Food delivery platform Zomato is testing priority deliveries, allowing users to pay an extra fee to get their orders delivered faster. The additional charge is applicable to members of Zomato Gold, the company's loyalty program. In addition, Zomato is piloting a 'pay later' feature where users can place orders and make the payment before the food is delivered. This move comes shortly after Zomato increased its platform fee by 25%. The company recently reported its third consecutive quarterly profit of INR 138 crore for the October-December 2023 period.

Zomato suspends hyperlocal goods delivery service Xtreme, restarts Intercity Legends: sources

Economic Times

Economic Times · 1y ago

Zomato suspends hyperlocal goods delivery service Xtreme, restarts Intercity Legends: sources

Indian food delivery platform Zomato has suspended its hyperlocal goods delivery service, Xtreme, due to low demand. Xtreme, launched in October 2021, aimed to provide small intracity deliveries for both small and large merchants. However, the service did not gain traction, leading to its suspension. Zomato has also relaunched its intercity food delivery offering, Legends, with a new model that allows customers to curate orders from different restaurants across the country. This comes after Zomato faced legal issues for delivering pre-stocked items instead of direct restaurant deliveries.

Consumer internet companies charge per order fees to up margins

Economic Times

Economic Times · 1y ago

Consumer internet companies charge per order fees to up margins

Consumer internet platforms like Uber, BigBasket, Zomato, and Swiggy are now charging per order fees to optimize unit economics and increase profitability. Uber is imposing a distance-based 'booking fee' on its cab services, while BigBasket has introduced a Rs 5 handling charge on its quick commerce platform. Zomato and Swiggy already charge a platform fee of Rs 2 on food delivery orders. These charges aim to cover operational costs and reflect the cost of providing convenience to customers.

India's Zepto becomes the first quick commerce unicorn to introduce platform fee of Rs 2

IndianStartupNews

IndianStartupNews · 1y ago

India's Zepto becomes the first quick commerce unicorn to introduce platform fee of Rs 2

Indian quick commerce startup Zepto has introduced a platform fee of Rs 2 per order as part of its effort to increase profitability. The company has also ended free deliveries for some users and implemented delivery fees based on order value. These fees, along with handling fees, surge fee, and cart fee, aim to diversify Zepto's revenue streams beyond just delivery fees. Additionally, Zepto has launched a membership program called Zepto Pass, offering unlimited free deliveries for orders above Rs 99. Despite experiencing significant revenue growth in FY23, the company aims to achieve EBITDA profitability and reduce losses.

Zomato hikes platform fee on food delivery to Rs 10 during festive season

Economic Times

Economic Times · 8m ago

Zomato hikes platform fee on food delivery to Rs 10 during festive season

Gurgaon-based food delivery platform, Zomato, has increased its platform fee for food delivery transactions to Rs 10 per order during the festive season, up from Rs 7. The fee helps cover operational costs and is aimed at maintaining services during the busy period. Zomato's rival, Swiggy, also charges a platform fee and has progressively increased it to Rs 7. These fees are additional charges applied to each food order and contribute to the companies' revenue. The platform fee increase is expected to boost the take rates for Zomato and Swiggy as they handle millions of daily food delivery orders.

Zomato collected Rs 83 cr in platform fee from customers till March

YourStory

YourStory · 11m ago

Zomato collected Rs 83 cr in platform fee from customers till March

Food delivery aggregator Zomato has collected Rs 83 crore through its platform fee on orders from August 2023 to March 2024, according to the company's annual report. The platform fee is cited as one of the key factors driving Zomato's Adjusted Revenue, which grew 27% year-on-year to Rs 7,792 crore in FY24. Zomato began charging a platform fee of Rs 2 per order in August, which has since been increased to Rs 6 in key markets. The introduction and increase in platform fee is part of Zomato's strategy to enhance profitability, similar to its rival Swiggy.

Zomato introduces ‘long distance service fee’ on restaurants for deliveries beyond 4 km

Economic Times

Economic Times · 1m ago

Zomato introduces ‘long distance service fee’ on restaurants for deliveries beyond 4 km

Zomato has introduced a "long distance service fee" for deliveries beyond 4 km, charging Rs 15 for orders within a 4-6 km radius and Rs 25-35 for distances over 6 km. This change, alongside revised commission structures, has sparked concern among restaurant partners, with some considering protests. The company cites deteriorating user experience over long distances as a reason. The National Restaurants Association of India plans to discuss these issues with Zomato soon.

Holi surcharge? Swiggy Instamart introduces festive handling fee on orders

YourStory

YourStory · 4m ago

Holi surcharge? Swiggy Instamart introduces festive handling fee on orders

Swiggy Instamart introduced a 'festive handling charge' for orders during Holi, marking its first-time surge fee, similar to other quick-commerce platforms. The fee ranges from Rs 8.90 to Rs 20, varying by location. While some platforms, like Blinkit, don't charge a platform fee, others like Zepto do. Despite being small, platform fees significantly boost revenue. For instance, Zomato collected Rs 83 crore between August 2023 to March 2024, contributing to 27% YoY revenue growth.

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