Zomato Expands Platform Fee To More Users, Hikes It To INR 3 In Some Cities

Zomato, McDonald’s Slapped With INR 1 Lakh Fine For Wrongly Delivering Non-Veg Food

SUMMARY

Zomato is charging a platform fee of INR 3 per order from some users in Tier II cities, while it seems to be unchanged at INR 2 for most users in metro cities

Zomato has also begun charging the platform fee from Zomato Gold users, who were earlier exempt from paying the fee

Earlier this year, Zomato began levying a platform fee of INR 2 per order from select users, months after a similar move by its rival Swiggy

Foodtech giant Zomato, which started levying a platform fee of INR 2 per order for select users, has extended the fee to more users and also hiked it.

Based on the orders placed on the platform from different cities, Inc42 has learnt that Zomato is charging a platform fee of INR 3 from some users in Tier II cities. However, the platform fee seems to be INR 2 for most users in metro cities.

Besides, Zomato has also begun charging the platform fee from Zomato Gold users. Earlier, users with Zomato Gold subscription were exempted from this fee.

In response to Inc42’s queries on the changes in platform fee, a Zomato spokesperson said, “Platform fee will be applicable for all our customers. We are still in the experiment stage, and are gradually rolling it out across India.”

The foodtech major had earlier said that the ‘flat fee’ will be chargeable irrespective of the cart value and will enable the company to enhance features on its platform.

Zomato’s move to levy the platform fee came months after its rival Swiggy began charging a platform fee of INR 2 in April this year.

The new fee could largely be attributed to the efforts of the foodtech platforms to create an additional source of income as they push for profitability.

The latest development comes at a time when Zomato has been rolling out new features. It launched a multi-restaurant cart feature in June and was even experimenting with generative artificial intelligence (AI) across its multiple platforms.

Zomato turned profitable in the first quarter of the financial year 2023-24 (FY24), posting a consolidated profit after tax (PAT) of INR 2 Cr as against a net loss of INR 186 Cr in the corresponding quarter of the previous fiscal.

Zomato’s net loss stood at INR 188 Cr in the preceding March quarter, when it also turned adjusted EBITDA positive, excluding Blinkit.

The gross order value (GOV) of Zomato’s food delivery business stood at INR 7,318 Cr in Q1 FY24 as against INR 6,425 Cr in the corresponding quarter of the last fiscal.