Zomato‘s share price continued to make gains for the third straight session on Tuesday morning going up over 2.5%.
What Happened: Shares of the food delivery giant are upbeat today after media reports suggested that it has raised platform fees. As per the reports, the fees have been hiked from ₹3 to ₹4 in key markets. In some instances, this fee went up as high as ₹9 on New Year’s Eve.
Zomato first implemented the platform fee in August 2023. These fees are levied in addition to the regular delivery fees on Zomato. It’s worth noting that regular delivery fees are waived for members of Zomato’s loyalty program, Zomato Gold. However, even Zomato Gold members are not exempt from the platform fee.
Reacting to the news, CLSA maintained its “buy” rating on the stock with a price target of ₹168. The global brokerage firm said that the fee hike will partially offset the impact of GST on delivery charges. The brokerage’s target reflects a 35% upside from the stock’s last closing price of ₹124.50.
Price Action: Zomato’s share price was up 2.41% to trade at ₹127.50 as the markets opened on Tuesday.
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