Zomato, the food delivery behemoth, has raised its platform fee to ₹5 for its users and has put a temporary halt on its intercity delivery services.

What Happened: The Economic Times reported on Sunday that Zomato has decided to increase its platform fee. This new fee will apply to all orders made through the Zomato app. However, the company has not given any specific reasons for this sudden increase in the platform fee.

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In addition to the fee hike, Zomato has also decided to suspend its intercity delivery services temporarily. This decision has taken many by surprise as the company has not yet revealed the reasons behind this move or the period for which the service will remain suspended.

The startup was in the firing line for its intercity delivery service. A customer, Sourav Mall, filed a lawsuit questioning the authenticity of its ‘Legends’ service. Mall received a ‘fresh’ kebab from Lucknow at his residence in Gurgaon within just 30 minutes, which has raised doubts about the credibility of the service.

This move by Zomato comes at a time when the food delivery industry is witnessing intense competition. The increase in platform fees could be a strategy to boost revenue and maintain a strong market position.

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