Zomato Trials Faster Delivery Service with Extra Charge; Platform Fee Hiked

Zomato is testing a new priority delivery feature in Bengaluru and Mumbai, offering faster delivery for an extra Rs 29 fee, even for Zomato Gold members.

  • Zomato is testing a new priority delivery feature in Bengaluru and Mumbai, offering faster delivery for an extra Rs 29 fee, even for Zomato Gold members.
  • Alongside, Zomato is revising its intercity delivery service, Legends, due to delivery method issues, putting expansion plans on hold and facing a lawsuit.
  • Additionally, Zomato has increased its platform fee by 25% to Rs 5 per order, affecting customers in select cities, just ahead of its financial results announcement.

Zomato, a leading food delivery platform, is experimenting with a priority delivery service, allowing customers in Bengaluru and Mumbai to receive their orders faster for an additional fee. This trial, reported by Moneycontrol, charges customers an extra Rs 29 for a 16-21 minute delivery, compared to the standard 21-minute timeframe. Interestingly, this fee applies to all customers, including Zomato Gold members, indicating a shift towards monetizing quicker delivery options.

In addition to this trial, Zomato is grappling with challenges related to its intercity delivery service, Legends. Launched in 2022, Legends is undergoing revisions due to delivery method issues, leading to a pause in expansion plans. Moreover, Zomato has hiked its platform fee by 25% to Rs 5 per order, impacting customers in several cities. This fee hike comes shortly before Zomato’s anticipated financial results announcement, reflecting the company’s efforts to boost revenue amidst increasing competition in the food delivery sector.