Zomato increases platform charges to Rs 5 per order and calls it ‘business call’

New Delhi: Zomato has hiked its platform fees by 25 percent to Rs 5 per order from Rs 4 in select markets, citing this as part of business calls from the food tech giant.

According to the company’s app, it has also discontinued its intercity food delivery service “Intercity Legends”.

This comes days before results are announced for the quarter ending in March.

When asked for comment, a Zomato spokesperson said PTI“These are business calls that we make from time to time based on a variety of factors.”

Notably, the food delivery platform has received several tax demands totaling Rs 227.85 crore since March 15, separate regulatory filings showed.

In February, Zomato reported a consolidated net profit of Rs 138 crore for the December quarter.

The company is expected to announce fourth-quarter (January-March) results next month.

According to company sources, the increase in platform charges includes major cities like Delhi-NCR, Bengaluru, Mumbai and Hyderabad.

The company introduced a platform fee last August, starting at Rs 2 per order, which has been gradually increased.

Its main rival, Swiggy, already charges a platform fee of Rs 5 per order.

When searching for its intercity delivery service “Intercity Legends”, the company says in its app: “Improvements are underway! Stay tuned as we will be back to serve you soon.”