Zomato, the prominent player in the food technology sector, initially introduced a platform fee of INR 2 per order for specific users. This fee has now been expanded to a larger user base and has also been subjected to an increase.
Read More: Zomato follows Swiggy’s lead, tests INR 2 platform fee to enhance profitability
Analyzing orders made through the platform across diverse cities, it has come to light that Zomato is imposing a platform fee of INR 3 on certain users in Tier II cities. Conversely, the platform fee appears to stand at INR 2 for the majority of users in metropolitan cities.
Furthermore, Zomato has initiated the practice of levying the platform fee on Zomato Gold users as well. Previously, individuals with a Zomato Gold subscription were exempt from this charge.
Addressing inquiries regarding the alterations in the platform fee structure, a representative from Zomato commented, “Platform fee will be applicable for all our customers. We are still in the experiment stage, and are gradually rolling it out across India.”
Previously, the prominent food technology company had stated that the ‘fixed fee’ would be applicable regardless of the total order value, and this implementation would empower the company to enrich its platform features.
Zomato’s decision to impose the platform fee followed several months after its competitor Swiggy initiated a platform fee of INR 2 in April of the current year.
Read More: Swiggy implements ‘platform fee’ on all orders, users to bear the cost
The introduction of the new fee can primarily be attributed to the food technology platforms’ endeavors to establish an additional income stream while striving for improved profitability.
This recent advancement arrives during a period when Zomato has been introducing fresh features. In June, the company introduced a multi-restaurant cart feature, and it has also been conducting experiments with generative artificial intelligence (AI) across its various platforms.
Zomato achieved profitability in the initial quarter of the fiscal year 2023-24 (FY24), reporting a consolidated post-tax profit (PAT) of INR 2 crore, in contrast to a net loss of INR 186 crore recorded in the same quarter of the preceding financial year.
Read More: Zomato turns profitable in Q1 FY24, reports INR 2 Cr consolidated PAT
In the previous March quarter, Zomato incurred a net loss of INR 188 crore, while also achieving a positive adjusted EBITDA, excluding Blinkit.
In the first quarter of FY24, the gross order value (GOV) for Zomato’s food delivery segment amounted to INR 7,318 crore, marking an increase from INR 6,425 crore recorded in the corresponding quarter of the previous fiscal year.