Food tech platform, Zomato raised its customer platform levy fee by 25 percent which is Rs.5 per order expected to be effective from April 20.

Zomato’s main markets including the National Capital Region, Bangalore, Mumbai, Hyderabad and Lucknow now have an increase in per order flat charge.

Last year, the foodtech platform launched a Rs.2 platform fee when it hoped to improve its margins and become profitable. Next it increased the fee to Rs.3 before the increase in January 1 to Rs.4. for some time it had increased the platform fee to Rs.9 towards the end of last year.

While its share price received a positive response upon January’s development, analysts denoted that the platform’s fee increase charge would partially offset the impact of GST on delivery charges.

On a yearly basis, Zomato facilitates around 80 to 90 orders. An increase in each Rs 1 convenience fee around a five percent impact on EBITDA. However, this hike is effective only in some cities as of now.

Currently, Zomato has paused its Intercity Legends service which delivered orders from highly reputed restaurants in major cities to customers in other cities. The ‘Legends’ tab on the Zomato app says, "Enhancements are underway. Please stay tuned as we will be back to serve you soon".

Zomato’s stock price has been on a rise thanks to increasing profitability in its core business and the fast growth of its quick commerce arm, Blinkit.

Towards the December quarter, the food tech platform’s business registered a 30 percent on-year increase in adjusted revenue, landing Rs.2,025 crore on a consolidated basis.

Blinkit doubled its revenue to Rs 644 crore during the period.

The food tech platform consolidated net profit of Rs.138 crore against a net loss of Rs.347 crore in the year-ago period. Revenue surged to Rs 3,288 crore from Rs 1,948 crore in the previous year.