The media reports state that the company is levying a Rs 15 per order charge on deliveries within a four-to-six km radius for orders valued over Rs 150
Food Delivery aggregator Zomato has brought a long-distance service fee for orders being delivered beyond a four-kilometre radius, as per the media reports. The company is levying a Rs 15 per order charge on deliveries within a four-to-six km radius for orders valued over Rs 150, the reports added.
The reports highlighted that the company has told the restaurant partners that the total service fee will be capped at 30 per cent. This includes the long-distance charge. The reports cited restaurants raising concerns over the changes to the commission terms on a frequent basis.
However, a fee of Rs 25 to 35 is being charged by the company for deliveries beyond a six-kilometre radius. This is dependent on cities rather than the size of the order, the reports noted. In addition to this, the media reports claimed that the company has also changed certain terms and put clauses in place to penalise restaurants in case they do not maintain price parity with other platforms.
The media reports stated that the industry bodies have reached out to the company, raising concerns over the levy.
In an earlier development, citing profitability issues, Eternal (formerly Zomato) decided to pull the plug on its quick food delivery business, Zomato Quick. The development comes just a few months after the company introduced the service as a pilot. The company is shutting down ‘Everyday’ as well, which was a pilot project offering home-style meals at affordable prices.
As the company filed the financial results for the fourth quarter of the financial year 2025 (Q4FY25), Deepinder Goyal, the Chief Executive Officer (CEO) of Zomato, highlighted that it was becoming difficult for the company to venture on the path to profitability without compromising on customer experience.
