Zomato Suspends Intercity Delivery; Hikes Platform Fees to Rs 5 Per Order

Gurgaon-based food delivery platform Zomato has increased its platform fee by 25% to Rs 5 per order. 

The platform fee is an extra charge on every order, separate from the delivery fee. Zomato started this fee in August 2023 at Rs 2 per order and then raised it to Rs 3 in October. Earlier this year, on January 1, they increased it to Rs 4 from Rs 3.

The company has also suspended its intercity delivery service, Intercity Legends.

These developments come on the heels of the company receiving tax demands and penalty orders from authorities. 

The Intercity Legends, was an initiative that used to deliver famous dishes from renowned restaurants across select cities in India. This service included biryani from Lucknow and Hyderabad and sweets from Kolkata and Bengaluru. 

Zomato transported these dishes by flight every day or two, depending on their perishability, keeping them frozen throughout the journey. 

But now, when you select the 'Legends' section on Zomato's app, the following message appears: "Enhancements are underway. Please stay tuned as we will be back to serve you soon." 

Meanwhile, Zomato has received a tax demand and penalty order amounting to Rs 11.82 crore related to GST on export services provided to its subsidiaries located outside India from July 2017 to March 2021.