Zomato Increases Platform Fee In Major Markets: New Rates Effective January 1

Zomato has raised its platform fee from ₹3 to ₹4 per order in its principal markets.

What to know: This 33% increase, effective from January 1, follows the fee’s initial implementation in August 2023. On New Year’s Eve, a notable spike in the platform fee to as much as ₹9 coincided with Zomato achieving a record number of deliveries, equaling the total deliveries of the past six New Year’s Eves combined.

This move by Zomato, alongside its competitor Swiggy, mirrors a broader trend among consumer-focused internet platforms to implement additional charges, aimed at enhancing unit economics.

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These fees are charged in addition to regular delivery fees, which are waived for members of Zomato’s loyalty program, Zomato Gold. However, Zomato Gold members are not exempt from the platform fee.

What does it mean for Zomato: Financially, the introduction of the platform fee has positively influenced Zomato’s earnings. The company’s take rate, or revenue per order, saw an improvement in the recent quarters, contributing to its consecutive quarterly net profits.

With the food delivery market evolving, such strategic financial decisions are becoming increasingly crucial for companies to maintain profitability and market competitiveness.

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