Zomato Tests Faster Delivery Option for a Fee, Increases Platform Charge

Zomato, a leading food delivery service, is experimenting with a new feature that allows customers to pay an additional fee for faster delivery. 

This initiative is part of a series of adjustments Zomato is making to enhance user experience and retain its customer base. Although the feature is still under trial, the company is expected to make an official announcement soon.

In a recent update, Zomato has also increased its platform fee by 25%, which now adds ₹5 to each order, up from ₹2 in August 2023. This adjustment affects users in major cities such as Hyderabad, Lucknow, Bengaluru, Mumbai, and Delhi-NCR. The platform fee, a fixed charge applied to every order regardless of the total cost, is also payable by Zomato Gold members, who receive additional discounts and offers.

Comparatively, Swiggy, Zomato’s main rival, charges a platform fee ranging from ₹5 to ₹10. This competitive landscape is crucial as both companies strive to offer the best service while managing operational costs.

Further expanding its service range, Zomato is overhauling its Legends program, an intercity delivery service that began in 2022. Originally designed to deliver next-day meals from select locations, Legends faced challenges with its pre-stocked goods delivery model and has been subject to a lawsuit over breached service claims. In response, Zomato is not only improving the service but also exploring options to extend it for longer intra-city distances and possibly international deliveries.

This series of strategic changes by Zomato indicates its commitment to adapting its business model and services amidst growing market demands and competition. Customers can expect updates and possible new features as the company continues to innovate and expand its offerings.