• Zomato’s customers shocked


• Zomato has increased its ‘Platform Fee’


• Why do companies increase fees?

Zomato Hike Platform Fees: The effect of rising tensions in the Middle East is now being seen in India as well. On one hand, oil companies have increased the price of ‘premium petrol’ sold in the country by around ₹2; On the other hand, online food delivery services have also become more expensive. Zomato has hiked its ‘Platform Charges’, putting additional financial burden on customers.

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Zomato’s customers shocked

Following this increase, Zomato’s platform fee has increased from ₹12.50 to ₹14.90 per order. Earlier, this fee was last revised in September 2023. Meanwhile, Zomato’s competitor Swiggy is already charging ₹14.99 (including taxes) per order. As a result, with this new fee structure of Zomato, the fees charged by both these food delivery platforms are now almost equal.

Why do companies increase fees?

This hike in platform charges has come in the wake of a rise in crude oil prices. Due to rising fuel costs, delivery services also increase operational expenses, which affects both restaurants and ‘delivery partners’. As a result, these companies are raising charges to cover their rising costs. This directly affects consumers; Because henceforth the total bill for each order will be higher than before and this is happening at a time when the competition in this sector is getting fiercer day by day.

Consequences of tensions in the Middle East

Interestingly, this latest tariff hike in the food delivery sector comes at a time when the nature of competition in the sector is changing rapidly. Rapido, an ‘urban mobility’ startup, has recently launched its food delivery service ‘Only’ in Bangalore.

Pressure on established companies

The company has clarified that it will not charge any additional charges to customers or restaurants apart from the usual delivery charges. This strategic move by Rapido may put pressure on incumbents in the market; Especially at a time when customers are already voicing their displeasure and concern over various additional charges levied on food delivery orders.

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