Zomato increases mandatory platform fees to Rs 5

New Delhi: Online food delivery platform Zomato has increased its platform fees by 25 percent to Rs 5 per order.

Zomato introduced a platform fee of Rs 2 in August last year and later increased it to Rs 3 to improve margins and become profitable.

Buoyed by a record number of food orders on New Year’s Eve, the food delivery platform increased mandatory platform fees from Rs 3 per order to Rs 4 in key markets in January.

The new platform fees will be levied on all customers, including Zomato Gold.

Meanwhile, the company has suspended Intercity Legends, its intercity food delivery service.

“Improvements are underway. Stay tuned as we will be back to serve you soon,” read the post on the ‘Legends’ tab in the Zomato app.

Last week, Zomato received a Goods and Services Tax (GST) demand and penalty notice worth Rs 11.81 crore. The order consists of Rs 5.9 crore of GST demand and penalty of Rs 5.9 crore for the period July 2017 – March 2021.

(IANS)