Zomato Hikes Platform Fee To Rs 10 As Festive Demand Spikes
According to a notification on the app, this fee helps cover operational costs, ensuring that Zomato can maintain its services during the busy season
Zomato has increased its platform fee from Rs 7 to Rs 10. According to a notification on the app, this fee helps cover operational costs, ensuring that Zomato can maintain its services during the busy season.
Initially introduced at Rs in August 2023 to enhance profit margins, the platform fee has seen gradual increases, including a temporary hike to Rs 9 on 31 December. The latest Rs 1 increase is projected to generate an additional Rs 65 crore annually, based on Zomato's FY 2023 order volume of 64.7 crore.
On 22 October, Zomato announced a slight increase in quarter 2 (Q2) profits, although investments in expanding "dark stores" for its Blinkit quick commerce service had some impact. The company added 152 dark stores this quarter, bringing the total to 791, but margins for Blinkit dipped to 3.8 per cent.
Zomato's consolidated revenue for Q2 surged nearly 69 per cent year-over-year, reaching around Rs 4,800 crore. The company also plans to raise Rs 8,500 crore through a qualified institutional placement to strengthen its finances following a recent acquisition in the ticketing sector.
With increasing competition in the food delivery market, rival Swiggy has unveiled an initial public offering worth USD 448 million, while Zepto secured USD 340 million in August in preparation for its 2025 listing.
