## Zomato Hikes Platform Fee by 25% to Rs 5 per Order
Online food delivery platform Zomato has increased its platform fee by 25% to Rs 5 per order. This flat charge is applied to all customers across orders.
Zomato first introduced a platform fee of Rs 2 in August 2022, later raising it to Rs 3 to improve margins and achieve profitability. Encouraged by record food orders on New Year's Eve, the company further increased the mandatory platform fee to Rs 4 per order in January across key markets.
The latest hike comes just a week before Zomato is scheduled to announce its financial results for the March quarter.
## Zomato Suspends Intercity Legends Service
In addition to the platform fee increase, Zomato has also suspended its inter-city food delivery service, Intercity Legends. A message on the 'Legends' tab of the Zomato app reads, "Enhancements are underway. Please stay tuned as we will be back to serve you soon."
## Zomato's Recent Performance and GST Demand
Zomato reportedly handles approximately 85-90 crore orders annually. In the December quarter, the company reported a 30% year-on-year jump in adjusted revenue.
However, Zomato recently received a GST demand and penalty order totaling Rs 11.81 crore for the period of July 2017 to March 2021. The order, issued by the Additional Commissioner of Central Goods and Services Tax, Gurugram, includes a GST demand of Rs 5.9 crore and a penalty of the same amount. It pertains to export services provided by Zomato to its foreign subsidiaries between July 2017 and March 2021.