Zomato Increases Platform Fee to Rs 10 During Festive Season

From now until the end of the year, Zomato's platform fee for food delivery will rise from Rs 7 to Rs 10 per order. Its fans have had a lot to say about this. This change was made by the Gurgaon-based company through an alert in its app. It is said to help food delivery services cover their costs when they are busy.

Details of the Fee Increase
Zomato will be able to keep offering its services even though demand is likely to rise during the holiday season thanks to the new platform fee, which starts right away. The company says, "This fee helps us pay our bills so Zomato can stay open." It has gone up a little to keep up with demand during the holidays.

From 2023 on, Zomato charged a flat Rs 2 fee for every order. The platform fee began here. Operating costs have been going up over time, and so has this fee. This is a trend that the whole business is seeing.

Competitive Landscape
This type of fee scheme was first used by Swiggy, which is Zomato's main rival. Since then, the site fee has gone up to Rs 7. Zomato's most recent price hike puts it more or less on par with its main rival, which also had to adapt to rising costs.

The service has more costs than just food and transport fees. Platform fees pay for those other costs. Some of these costs are technology infrastructure, customer service, and logistics. These costs are especially high when there are a lot of sales, like during the holidays.

Understanding the Additional Costs
People who buy food should know that the platform fee is not the same as the taxes and transport fees. The site fee also includes a Goods and Services Tax (GST) of 18%. In other words, users will pay Rs 11.80 for each order after the GST is added. This cost is not covered by the Rs 10 platform fee. This is proof of how important it is for clients to know the full price of their orders.

Customer Reactions
Different customers have had different reactions to the price hike. There are some users who say they understand why fees need to go up during busy times. They know that events can make it more expensive to run delivery services. Some people are mad, though, and say that the extra fees can be too much to handle when the cost of living is going up.

Getting food delivered is becoming more and more important in cities, especially during the holidays when it can be hard to find a place to eat. Because of this, businesses will probably keep changing their prices to keep customers happy and make money at the same time.

Industry Implications
A lot more people buy food online around the holidays, which is great for companies like Zomato and Swiggy. As this busy time goes on, both businesses are likely to keep changing how they set their prices. This will change how they get new users and keep old ones.

As there is more competition and customer needs change, it will be interesting to see how Zomato and its rivals adapt their services and prices in answer to what customers say and how the market moves.

There is a bigger trend happening in the food service business, and the rise in platform fees may only be a short-term fix to meet holiday demand. People who order food are told to keep track of how it is split up so that they can make the best choices during this busy time of year. They will always need to be honest with customers about their prices and how they talk to them if they want to keep their business.

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