Zomato has initiated a trial of a flat Rs 2 platform fee on its food delivery application in specific markets. The Rs 2 platform fee is applied per order and is currently being tested with selected users. This fee is added regardless of the order value, meaning it applies to orders of any value. It also applies to users of Zomato Gold, the company’s loyalty program. The exact markets where this platform fee is being tested have not been disclosed.
This move comes in response to a similar action taken by its rival, Swiggy, which introduced a Rs 2 platform fee on all orders in April. Zomato’s Rs 2 platform fee is currently in an experimental phase and may be expanded if successful, aimed at enhancing profitability. A spokesperson for the company stated, “This is in an experiment phase right now, and we may or may not scale.”
Interestingly, this platform fee comes shortly after Zomato reported its first quarterly profit of Rs 2 crore for the June quarter. The company’s Chief Financial Officer, Akshant Goyal, had previously mentioned that no decision had been made regarding platform fees. He indicated that while it’s a business consideration, no such fee was currently in place on the platform.
Zomato’s core businesses experienced robust growth, leading to a 64% increase in income to Rs 2,597 crore in the June quarter. The company achieved a profit after tax of Rs 2 crore during the same period, a significant improvement compared to a loss of Rs 186 crore a year ago. The food delivery segment saw a revival in demand over recent months after facing some challenges in previous quarters. By the end of June 2023, Zomato had approximately 17.5 million monthly transacting customers.
