Zomato Rolls Out Extra Charges for Long-Distance Deliveries

Zomato, a key player in the foodtech industry, has allegedly begun collecting a new "long-distance service fee" for orders that are delivered more than four kilometres. The company would now charge its clients INR 15 for deliveries within a 4- to 6-kilometre radius if the order value exceeds INR 150, according to a media report that cited people familiar with the situation.
Depending on the city, the fee for orders over 6 km will range from INR 25 to INR 35. According to the report, the foodtech giant assured its restaurant partners that, excluding other expenses, the total service fees, including this additional distance charge, would not exceed 30%.
However, according to some eateries, their overall commission fees may reach 45%. The news occurs weeks after the company's fourth quarter financial results were released, which showed that despite a solid topline growth, its bottomline suffered greatly due to rising competition in the rapid commerce industry and stubbornly high expenses.
Zomato Realigning its Business Strategies
While operating revenue soared 64% to INR 5,833 Cr in the quarter under review from INR 3,562 Cr in the previous year, Zomato parent company Eternal's consolidated profit after tax (PAT) fell 77.8% to INR 39 Cr in Q4 FY25 from INR 175 Cr in the same period last year.
In an effort to boost its bottom line, the foodtech behemoth founded by Deepinder Goyal is reportedly raising prices and taking away some privileges from its customers and restaurant partners.
Zomato Also Altering its Gold Membership Benefits
Zomato recently introduced a significant modification to its Gold membership benefits: starting on May 16, users who were already enrolled in its Gold membership plan will be subject to an extra rain fee.
The platform cost, which is now INR 10 per order, was previously increased by the corporation four times in the last year alone.
In light of this, the Competition Commission of India (CCI) declared in April that the foodtech giant's platform fees, food prices, and delivery fees did not constitute unfair or discriminatory conduct.
Competition is Getting Tougher as Swiggy Rolls Out New Scheme for Corporates
To further strengthen its food delivery business, listed foodtech firm Swiggy has established a corporate rewards programme, just days after unveiling a new initiative to attract students.
The CEO of Swiggy's food marketplace segment, Rohit Kapoor, stated in a LinkedIn post that the new programme will provide corporate personnel with a number of advantages, such as lower Swiggy One membership costs and order discounts.
Kapoor went on to say that Swiggy's new Corporate Rewards programme truly excites him. A wealth of advantages can be accessed with just a basic email verification. Customers can receive at least INR 125 off simply by using their work email, or they can have a Swiggy One subscription that offers unlimited free deliveries for a full quarter.
Corporate personnel will receive "a minimum of INR 125 off on food orders", "flat INR 1,000 on top of pre-book offers", and Swiggy One membership at "INR 30" (with "free" delivery for 3+1 months).
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