As the festive season approaches, Zomato has rolled out a surprise for its millions of customers across India—an increase in its platform fee to INR 10 per order. This price hike, which represents a 67% jump from the previous fee of INR 6, is part of the company’s strategy to manage the surge in demand during this busy period.
As the festive season approaches, Zomato has rolled out a surprise for its millions of customers across India—an increase in its platform fee to INR 10 per order. This price hike, which represents a 67% jump from the previous fee of INR 6, is part of the company’s strategy to manage the surge in demand during this busy period.
Zomato introduced the platform fee in August 2023 at INR 2, and since then, it has gradually increased, hitting INR 6 in previous months. The company briefly raised the fee to INR 9 during peak demand last year as well. According to Zomato, this small fee increment will help ensure that its services run smoothly and that customers experience minimal disruption during the high-demand festive period.
This platform fee hike comes at a time when Zomato is grappling with its financials. The company reported a 30% decline in its net profit for the July-September 2024 period, dropping to INR 176 crore from INR 253 crore in the previous quarter. This drop in profit puts additional pressure on the company to raise funds and maintain profitability in the highly competitive online food delivery market.
Alongside the fee hike, Zomato’s board approved plans to raise INR 8,500 crore via qualified institutional placements (QIP). This will help the company boost its cash reserves and manage future growth plans, eve
as it faces tough competition from rivals like Swiggy.
While the festive platform fee hike might cause some initial backlash, the nominal increase is unlikely to significantly deter users, given the convenience Zomato offers. As demand spikes during the festive season, many customers might still find the additional cost worthwhile for the quick and easy access to a variety of food options at their fingertips.
This move is not just about covering operational expenses; it reflects the broader strategies Zomato is adopting to balance customer satisfaction with profitability. With inflationary pressures, rising delivery costs, and competition in the market, small fee adjustments can significantly help companies like Zomato to stay afloat while maintaining customer service quality.
Key Highlights:-
- Zomato has increased its platform fee to INR 10 during the festive season, a 67% rise from its earlier fee of INR 6.
- The fee hike is aimed at covering operational costs and ensuring smooth service during the high-demand period.
- Zomato recently reported a 30% drop in its net profit, highlighting the financial pressures the company is facing.
- The board has approved raising INR 8,500 crore through QIP, adding to Zomato’s strategies for staying profitable.