Zomato introduces priority delivery at premium charges

The well-known food delivery app Zomato is testing a new service that offers quicker delivery times for an extra cost to improve consumer happiness. Currently, this approach is being tested in Mumbai and Bengaluru, two major cities. Consumers who choose this expedited delivery option can anticipate receiving their items in 16–21 minutes instead of the typical 30-minute delivery period. But there is an additional charge for this accelerated service. This additional charge applies to everyone, regardless of Zomato Gold members who get freebies and no delivery costs.

Priority delivery has been added, and it has also updated its platform charge, raising it by 25%. This implies that instead of the previous Rs 4, customers will be charged Rs 5 as a platform fee for each order. Users in several cities, including Delhi-NCR, Bengaluru, Hyderabad, Mumbai, and Lucknow, are impacted by this change.

Simultaneously, Zomato has temporarily suspended its “Legends” service, which provides food delivery across cities. The choice is being made as the business reviews its strategies for service expansion and delivery. A lawsuit over unfulfilled promises regarding the Legends service is another reason for this service halt.

These modifications take effect immediately before Zomato releases its March quarter financial reports. The company, which processes between 85 and 90 crore orders a year, had a 30% increase in adjusted revenue in the December quarter compared to the previous year. Zomato is also up against a penalty order and GST demand totaling Rs 11.81 crore for services delivered to its overseas operations. It is still too early to tell how customers will react to these new adjustments.

Swiggy, Zomato’s rival, currently levies a Rs 5 platform fee, and some users have noted paying as much as Rs 10. How these innovations affect market competition and customer loyalty is yet to be observed. Zomato’s decision to charge more for expedited delivery could put pressure on rivals like Swiggy and others to match these speeds to keep their market share.

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