Online food delivery giant Zomato has raised its platform fee to ₹10, up from ₹7, in anticipation of the festive season demand. The company introduced this update on its app, explaining that the increase helps cover operational costs to maintain services during high-demand periods, according to a report by Moneycontrol.
Zomato first introduced a ₹2 platform fee in August 2023 to improve its margins and has gradually increased it over time, with a temporary hike to ₹9 on December 31, 2023. This latest ₹1 hike could potentially generate an additional ₹65 crore annually, based on the company's FY2023 order volume of 64.7 crore.
In its recent financial update on October 22, Zomato reported a modest rise in Q2 profits, although these were impacted by significant investments in expanding its "dark stores" for the Blinkit quick commerce service. The company added 152 dark stores in Q2, bringing the total to 791, though margins for Blinkit dipped slightly to 3.8%.
Also Read: Zomato’s Net Profit Soars 389% YoY in Q2
Zomato's consolidated revenue for Q2 jumped 69% year-over-year, reaching approximately ₹4,800 crore. Additionally, the company is planning to raise ₹8,500 crore through a qualified institutional placement (QIP) to strengthen its financial position, following its acquisition of a ticketing business.
With increasing competition in the food delivery space, Zomato’s rivals are also taking significant steps. Swiggy recently offered shares worth $448 million in its IPO, while Zepto raised $340 million in August, gearing up for a 2025 listing.