Zomato’s Price Surge: Platform Fee Jumps 25% as Company Prunes Intercity Legend


New Delhi: In a significant move that impacts foodies and gastronomes across select cities, Zomato, the leading online food delivery platform, has announced a 25% hike in its platform fee, marking the second increase within a single year. Customers will now encounter a steeper cost, with up to ₹5 added to every order they place. This decision comes as part of the company’s strategic adjustments, which also include the discontinuation of the Intercity Legend service—a feature that allowed users to indulge in culinary delights from top-tier restaurants across different cities.

The latest financial strategy unveiled by Zomato indicates a clear focus on revenue enhancement and operational efficiency. With an impressive annual delivery tally of 85 to 90 crore orders, even a marginal fee increase translates into a substantial revenue boost, potentially augmenting the company’s earnings by ₹90 crore. This increment is poised to fortify Zomato’s EBITDA by 5%, although it’s currently limited to a handful of cities.

The cessation of the Intercity Legend service marks the end of an era for Zomato’s ambitious attempt to bridge the culinary gap between cities. While the platform’s subscription plan continues to waive delivery charges, the platform fee remains applicable.

In the broader scope of its business trajectory, Zomato, alongside its affiliate Blinkit, showcases a robust performance with continuous growth. The company projected a 30% year-on-year increase for the December quarter, a target that was not only met but exceeded. Zomato’s total revenue reached ₹2,025 crore, with Blinkit’s revenue doubling to ₹644 crore. This marks a dramatic turnaround from the previous year’s ₹347 crore loss in the same quarter, with the company now celebrating a net profit of ₹138 crore.


As Zomato prepares to release its quarterly results in the upcoming week, stakeholders and customers alike are keenly observing how these changes will shape the future of online food delivery services. The platform fee rise and the operational recalibration reflect Zomato’s commitment to strengthening its business foundations while navigating the dynamic landscape of the food delivery industry.