Zomato, the prominent online food delivery platform, has increased its platform fee for users in key markets to Rs 4 per order, marking a 33% surge from the previous Rs 3. The modification, effective from January 1, has been confirmed through details on its app and sources familiar with the matter, as reported by The Economic Times. Notably, during New Year’s Eve, the company temporarily raised the fee to as high as Rs 9 per order in select markets, aligning with a surge in orders on December 31.
“These are business calls which we take basis various factors from time to time,” stated a spokesperson from Zomato, as reported by YourStory. Deepinder Goyal, CEO of Zomato, revealed that the orders surpassed the cumulative numbers recorded during New Year’s Eve in the previous six years, from 2015 to 2020.
Zomato had initially introduced a standardised flat platform fee in August 2023, starting at Rs 2 per order and later increasing it to Rs 3 across most major markets. Similarly, Zomato’s competitor Swiggy began charging a Rs 2 fee last year, which was subsequently increased to Rs 3. The report indicates that Zomato applies the platform fee in addition to a delivery charge, although 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. Notably, the platform fee also applies to Zomato Gold members.
In its 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 surged 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).