Zomato rolls out a 33% hike in platform fee across key markets
The Gurugram-based company had introduced a standardised flat platform fee back in August 2023, initially starting at Rs 2 per order and later upped to Rs 3 across most major markets.
Online food delivery giant has raised its platform fee for users in key markets to Rs 4 per order, marking a 33% increase from the previous Rs 3. This modification, effective from January 1, has been verified through details on its app and sources familiar with the matter, reports The Economic Times.
During New Year's Eve, the company had temporarily escalated the fee to as high as Rs 9 per order in select markets. This surge in fees coincided with Zomato experiencing high orders on December 31.
“These are business calls which we take basis various factors from time to time,” a spokesperson from Zomato told YourStory.
Deepinder Goyal, CEO of Zomato, revealed on X that the orders surpassed the cumulative numbers recorded during New Year's Eve in the previous six years, i.e. from 2015 to 2020.
The Gurugram-based company introduced a standardised flat platform fee back in August 2023, initially starting at Rs 2 per order and later increasing it to Rs 3 across most major markets.
In a similar vein, Zomato's rival last year began charging a Rs 2 fee, which was then increased to Rs 3.
According to the report, Zomato imposes the platform fee in addition to a delivery charge. However, this delivery fee is waived for members of its loyalty programme, Zomato Gold, who pay an upfront fee and receive perks such as discounts and free deliveries.
The platform fee applies to Zomato Gold members as well.
In the July-September quarterly results, Zomato's management linked the enhancement of its take rate, representing the percentage of revenue generated per food delivery order, to the introduction of the platform fee.
In the quarter ended September 2023, Zomato reported a profit after tax of Rs 36 crore. The company informed its shareholders through a filing that the revenue from operations in Q2 FY24 soared by 71%, reaching Rs 2,848 crore.
This growth was fueled by a 47% year-over-year surge in gross order values (GOV) across the food delivery, quick commerce segments, and going out (dining out and live events).
Edited by Affirunisa Kankudti