Zomato Raises Platform Fee Amid Rising Costs

Zomato has increased its platform fee by Rs 2.40, now charging Rs 14.90 per order. This rise comes during a time of escalating delivery operation costs, influenced by West Asia's rising crude oil prices. Competitor Swiggy charges Rs 14.99, while magicpin has opted against a fee hike.

Zomato has raised its platform fee by Rs 2.40, marking an increase to Rs 14.90 per order, as evidenced by its app on Friday. This fee adjustment comes in the wake of similar charges from rival Swiggy, which is charging Rs 14.99 inclusive of GST.

The platform fee increase is applicable across all markets that Zomato operates in and follows the last hike made in September of the previous year. In contrast, the third-largest player in the sector, magicpin, has decided against increasing its fee, maintaining it at Rs 14.20 per order to support restaurant partners during challenging times.

As fuel costs climb due to geopolitical tensions in West Asia, the food delivery industry faces higher operational costs, making Zomato's fee hike an indicator of the broader economic pressures impacting the sector.

(With inputs from agencies.)