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'Routine business matter': Zomato responds to outrage over sudden ‘festive season platform fee'
Zomato and Swiggy hiked platform fee in the middle of the festive season in India.
Food delivery giants Zomato and Swiggy have received flak from users after they hiked their platform fees last week, amid the rush of orders during the festive season. The two rivals are now charging a platform fee of ₹10 in certain cities.
Zomato introduced a platform fee in August 2023, charging ₹2 per order. By January 2024, Zomato had raised the platform fee to ₹4 per order. Right now,it charges a fee of ₹10 per order. The platform fee applies to all customers, even Gold members, and is over and above the delivery fee that Zomato also charges.
"Such changes in our platform fee are a routine business matter and are done from time to time and may vary from city to city," Zomato told the National Stock Exchange (NSE) in a regulatory filing.
What did Zomato tell its customers?
“This fee helps us pay our bills to keep Zomato running. To maintain services during festive season, it has increased slightly," the company told users in an app notification last week.
Zomato, however, did not respond to HT.com's questions on whether the festive season platform fee is temporary and whether it will be removed after the festive season. The Gurgaon-headquartered company, led by CEO Deepinder Goyal, also did not share details of how the money raised through the platform fee hike would be allocated or if a part of this fee would be given to its delivery partners.
Delhi-NCR, Mumbai, Bengaluru and Chennai are among the cities where Zomato is now charging ₹10 as "festive season platform fee".
(Also Read: Food lovers unhappy as Zomato hikes platform fee to ₹10, Swiggy follows suit)
Take a look at a Zomato customer's post on X:
Another user expressed his anger at even Zomato Gold users are being charged the platform fee. “I don’t understand the point of getting a Zomato Gold and being charged a platform fee!” Jerome D said.
Swiggy also increased its platform fee to ₹10, now called “festive season platform fee”,soon after Zomato's move. The company had increased its platform fee to ₹6 in June from ₹5 in May.
