Indian food delivery giant Zomato has reportedly raised its platform fee to Rs 4 per order, marking a 33% increase from the earlier Rs 3. According to an ET report, the change, which is effective from January 1, applies to key markets and is part of its strategy to improve its profitability.
When did Zomato introduced platform fee?
The Gurugram-based company first introduced a flat platform fee in August 2023, starting at Rs 2 per order. The fee was later increased to Rs 3 in most major markets. It’s worth mentioning that Zomato’s closest competitor, Swiggy, also implemented a similar fee structure last year.
What will be the impact on Zomato Gold members?
The report added that the newly increased platform fee is applicable to all customers, including those enrolled in Zomato Gold, the company’s loyalty program. While Zomato Gold members enjoy benefits like free delivery, they are not exempt from the platform fee.
Zomato’s financial growth
Zomato’s management attributes the improvement in its take rate, the percentage of revenue earned per order, to the platform fee. In the quarter ending September 2023, Zomato reported a net profit of Rs 36 crore. The company’s revenue from operations in Q2 FY24 grew by 71%, reaching Rs 2,848 crore.
“It is a small fee to make our economics better and viable in the long run. We make sure we keep our service affordable for our customers at all times,” Zomato’s chief financial officer, Akshant Goyal, told shareholders while announcing the company’s Q2FY24 results.
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Source: Indian Startup News
