Zomato increases its platform charge to Rs 5 for each order, citing “business calls.”

Zomato has increased its platform charge in some areas by 25%, from Rs 4 to Rs 5 per order. The food tech behemoth justified this increase by citing business decisions.

The company’s “Intercity Legends” interstate meal delivery service has also been put on hold, according to the app.

This occurs a few days before the results for the quarter that concluded in March are expected to be released.

A Zomato representative said, “These are business calls which we take basis various factors from time to time,” when contacted for comment.

Notably, since March 15, several regulatory filings revealed that the meal delivery company has received a total of Rs 227.85 crore in tax demand orders.

Zomato said in February that its combined net profit for the December quarter was Rs 138 crore.

The fourth quarter (January–March) results are anticipated to be released by the corporation the following month.

The increase in platform costs is reportedly applicable to key locations like Hyderabad, Bengaluru, Mumbai, Delhi-NCR, and others, according to corporate sources.

The platform charge was first implemented by the corporation in August of last year and has since been steadily raised from Rs 2 per order.

Swiggy, its primary competitor, currently levies a Rs 5 platform fee for each order.

When using its app to look for their intercity delivery service, “Intercity Legends,” the business states that improvements are in the works. Stay tuned, as we will be returning to serve you shortly.