Zomato Hikes Platform Fee to Rs 5, Pauses Intercity Service

New Delhi, Apr 22 (PTI) Zomato has hiked its platform fee by 25 per cent to Rs 5 per order from Rs 4 in select markets, citing it as a part of business calls taken by the food tech giant.

According to the company's app, it has also paused its intercity food delivery service 'Intercity Legends'.

This comes days before it is slated to announce the results for the quarter that ended in March.

When reached out for a comment, a Zomato spokesperson told PTI, "These are business calls which we take basis various factors from time to time".

Notably, the food delivery platform has received various tax demand orders aggregating to Rs 227.85 crore since March 15, separate regulatory filings showed.

In February, Zomato reported a consolidated net profit of Rs 138 crore for the December quarter.

The company is expected to announce the fourth (January-March) quarter results next month.

According to company sources, the hike in platform fees applies to major cities like Delhi-NCR, Bengaluru, Mumbai and Hyderabad, among others.

The company introduced a platform fee last August, starting with Rs 2 per order, which has been increased gradually.

Its main rival, Swiggy, already charges a platform fee of Rs 5 per order.

When searching for its intercity delivery service 'Intercity Legends', the company on its app says, "Enhancements are underway! Please stay tuned as we will be back to serve you soon".