Online food delivery platform Zomato has hiked its platform fee by 25 per cent to Rs 5 per order. Platform fees is the flat charge that food delivery companies charge from all customers across orders.
Zomato introduced a platform fee of Rs 2 in August last year and later hiked this to Rs 3 to improve its margins and become profitable. Buoyed by record food orders on New Year’s Eve, the food delivery platform in January increased its mandatory platform fee to Rs 4 from Rs 3 per order across key markets.
The hike comes week before the firm is to announce its March quarter financial results. The company has also suspended Intercity Legends, its inter-city food delivery service.
"Enhancements are underway. Please stay tuned as we will be back to serve you soon,” read the message on the 'Legends' tab on the Zomato app.
Zomato reportedly caters about 85-90 crore orders annually. In the December quarter, Zomato reported a 30 percent on-year jump in adjusted revenue.
The firm recently received a GST demand and penalty order totaling Rs 11.81 crore for the period of July 2017 to March 2021. The order is split into a GST demand of Rs 5.9 crore and a penalty of the same amount. The order was issued by the Additional Commissioner of Central Goods and Services Tax, Gurugram, for export services provided by Zomato to its foreign subsidiaries between July 2017 and March 2021.