Zomato Increases Platform Fee Amid Festive Season to Boost Margins

Zomato raises platform fee to Rs 10 ahead of the festive season, marking the sixth hike since August 2023, aiming to improve profitability.

Zomato Increases Platform Fee Amid Festive Season to Boost Margins

Zomato has announced an increase in its platform fee from Rs 7 to Rs 10, effective ahead of the festive season. A notification on the app explains, "This fee helps us pay our bills to keep Zomato running. To maintain services during the festive season, it has increased slightly."

The Deepinder Goyal-led company has increased its platform fee six times since its introduction in August 2023, when it was set at Rs 2. The fee rose to Rs 3 later that year, followed by Rs 4 on January 1, 2024, and a temporary hike to Rs 9 on December 31, 2023.

This cumulative 400% increase aims to improve Zomato’s margins and achieve profitability. Its primary competitor, Swiggy, currently charges a platform fee of Rs 7.

In financial updates, Zomato reported a consolidated net profit of Rs 176 crore for the second quarter ending September 30, 2024. This marks a sharp increase compared to the Rs 36 crore profit recorded in the same period last year. However, the company’s total expenses also surged, rising from Rs 3,039 crore last year to Rs 4,783 crore this quarter.