Zomato Tests Priority Delivery: Pay Extra for Faster Delivery

Zomato Tests Priority Delivery: Pay Extra for Faster Delivery

Zomato is testing a priority delivery service, allowing customers to pay extra for faster delivery. The company aims to increase customer satisfaction and growth.

Zomato is experimenting with a priority delivery service, enabling customers to expedite their orders for an additional fee. This innovative feature aims to reduce delivery times, providing a solution for those seeking quicker service. Although not yet fully implemented, the service is undergoing trials in prominent urban areas such as Bengaluru and Mumbai, as disclosed in a recent report by Moneycontrol.

According to the report, customers in Bengaluru can pay an additional Rs 29 to receive their orders within 16 to 21 minutes, compared to the standard delivery time of 21 minutes. As Moneycontrol highlighted, even Zomato Gold members are subject to this supplementary charge.

In addition to the priority delivery service, Zomato has introduced changes to its fee structure, aiming to enhance its services while sustaining growth. The platform has raised its platform fee by 25%, now imposing an extra Rs 5 on each order. This adjustment impacts customers across major cities such as Delhi-NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow. The platform fee is levied in addition to the delivery fee. It has undergone successive increases since its introduction at Rs 2 in August 2023, followed by increments to Rs 3 in October and Rs 4 on January 1 of this year.

Interestingly, Zomato's competitor, Swiggy, already imposes a Rs 5 platform fee, with reports indicating instances of a Rs 10 fee. This fixed charge applies to all orders, regardless of the total amount. Despite Zomato's provision of a separate delivery fee, Zomato Gold members are not exempt from this platform fee, indicating the company's evolving fee structure.

Apart from the fee adjustments, Zomato is reevaluating its intercity delivery service, Legends, which was introduced in 2022. Initially designed to facilitate next-day food delivery from specific cities, Legends encountered challenges due to alterations in its delivery approach involving pre-stocked items. Zomato is now reassessing Legends, contemplating expansion to accommodate longer-distance deliveries within cities and extending the service to other countries, although these plans are currently on hold. Following the departure of the head of Zomato's intercity delivery division soon after Legends' launch, the company is also entangled in a legal dispute over unmet service commitments.

In summary, Zomato's ongoing experiments with a priority delivery service and adjustments to its fee structure reflect its commitment to enhancing customer experience and sustaining growth in the competitive food delivery market.

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