Zomato increases mandatory platform fee to Rs 5

Meanwhile, the company has suspended Intercity Legends, its inter-city food delivery service.

New Delhi: Online food delivery platform Zomato has hiked its platform fee by 25 per cent to Rs 5 per order.

Zomato introduced a platform fee of Rs 2 in August last year and later increased it 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.

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The new platform fee is levied on all customers, including Zomato Gold.

Meanwhile, the company has 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.

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Last week, Zomato received a goods and services tax (GST) demand and penalty order worth Rs 11.81 crore. The order consists of Rs 5.9 crore in GST demand and a penalty of Rs 5.9 crore for the July 2017-March 2021 period.

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