Zomato increases platform fees to Rs 5 and suspends Intercity Legends service

In its third quarter results, the Deepinder Goyal-led company’s profit rose to Rs 138 crore in the quarter ended December. The shares of Zomato Ltd. have soared as brokers have maintained positive calls on the company following back-to-back gains. BofA Securities had said that the headroom Zomato has to increase take rate on the restaurant side will be due to monetization from advertising coming from restaurants and a function of platform fees.

The company has also discontinued its Intercity Legends service, which allowed users to quickly order dishes from legendary eateries in other cities. The tab for the service now has a note that says “Closed now. Come back soon.’

In the delivery space, Zomato is coming up with specialized delivery fleets to improve services. It launched a separate fleet for pure vegetarian food orders and a large delivery fleet, designed to handle large orders for a gathering of up to 50 people. The company will also roll out a dedicated cake delivery fleet with hydraulic balancers across the country in a phased manner.