Zomato has started charging a platform fee of ₹2 on some orders in specific markets. The minimal cost is charged for all users, even those who have subscribed to the Zomato Gold service, regardless of the value of their shopping cart.
The platform charge has been put into effect in a number of markets, however, the specific markets have not yet been disclosed. This move is considered an effort to explore new revenue streams, increase earnings, and promote sustainable growth.
It happens at a time when the leading provider of food technology announced its first quarterly profit of Rs. 2 crore from April to June. The app emphasizes that the charge "helps to pay the bills and keep Zomato running" in the pop-up notification announcing the charge.
Compared to a loss of 186 crores revealed a year ago, the company's revenue increased by 64% to 2,597 crores in the same period. Demand for meal delivery services has recently increased, which has accelerated Zomato's growth. The platform had over 17.5 million monthly active users as of June 2023.
The additional fees have not yet been added to Blinkit, their quick-commerce marketplace. According to media sources, the project is presently in the trial phase, and the results will determine exactly how it will be put into effect permanently.
In a letter to shareholders, Zomato CEO Deepinder Goyal stated that the company has been working to improve its operations and ensure that the right individuals are in the appropriate roles within the organization. “...I can in hindsight say that most of our seemingly ‘risky’ bets have changed the trajectory of the business significantly, much faster than we expected,” he added.
Swiggy, an online platform that competes with Zomato, had previously implemented a similar charge on every purchase earlier this year.
After reporting a quarterly profit ahead of schedule on Friday, Zomato's shares soared to a one-and-a-half-year high, signaling that the company was headed for consistent earnings growth. Shares soared over 14% to hit a 52-week high of 98.39 during the morning session of trading on the BSE.
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