Zomato
As demand surges ahead of the festive season, food delivery giant Zomato has raised its platform fee from Rs 7 to Rs 10. The company informed its users via an in-app notification, stating that this increase will help cover operational costs and ensure uninterrupted services during the busy period.
Zomato
Zomato first introduced a nominal platform fee of Rs 2 in August 2023 as part of its broader plan to boost margins and move toward profitability. Over time, this fee saw incremental hikes—Rs 3, followed by Rs 4 on January 1. A temporary hike of Rs 9 was implemented on December 31 last year, before the current fee settled at Rs 10.
For Zomato, this modest Re 1 hike can have a substantial impact, considering the platform processed 647 million orders in FY23. This increase could add Rs 65 crore annually to Zomato’s topline.
While Zomato’s second-quarter profits were slightly below expectations, the company remains focused on expanding its operations, with significant investments into Blinkit, its quick-commerce venture. Blinkit’s network of “dark stores” has grown rapidly, with 152 new stores added in the quarter, bringing the total to 791.
Zomato’s revenue for the quarter ending September 30, 2023, soared by nearly 69% to Rs 4,800 crore, while its consolidated net profit increased fivefold to Rs 176 crore. Additionally, to solidify its market position, Zomato recently approved a fundraise of up to Rs 8,500 crore through a Qualified Institutional Placement (QIP). These funds are expected to enhance its cash reserves, especially after acquiring a digital payments firm’s movie and events ticketing businesses
