Zomato Raises Platform Fees by 33% in Key Markets to Rs 4

2 Jan 2024 , 11:30 AM

According to information in the company’s app and people in the know, Zomato has hiked the platform fee it charges consumers for meal delivery to Rs 4 per order in its core markets from Rs 3. The 33% rise goes into effect on January 1.

On New Year’s Eve, the Gurugram-based firm briefly increased the cost to as much as Rs 9 per order in several locations.

Following this development, the company’s counter gained as much as 2.5% to intraday high of Rs 128.35 on NSE.

On December 31, Zomato’s orders reached an all-time high, with CEO Deepinder Goyal disclosing on microblogging site X (previously Twitter) that they surpassed the total amount of orders it received for New Year’s Eve over the previous six years (2015-2020).

In August 2023, Zomato began charging a fixed platform charge. It cost initially Rs 2 per order, but was later increased to Rs 3 in most of its key markets.

Zomato’s competitor, Bengaluru-based Swiggy, also began collecting a Rs 2 charge last year, which was later increased to Rs 3.

Zomato charges a platform fee in addition to a delivery price, which is removed for Zomato Gold users who pay an upfront cost and receive perks such as discounts and free delivery. The platform fee, on the other hand, applies to Zomato Gold subscribers as well.

Zomato’s management attributed the increase in its take rate — or the proportion of what the firm makes on each order — for food delivery to the implementation of the platform charge in its July-September quarterly results.

At around 11.26 AM, Zomato was trading 1.93% higher at Rs 126.90, against the previous close of Rs 124.50 on NSE. 

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