Zomato tests platform fee on food orders

Jyoti Banthia Updated - August 06, 2023 at 10:23 AM.

Food delivery major Zomato has rolled out a platform fee of ₹2 per order irrespective of the cart value.

The additional charges have been rolled out to select users for now. However, it has not been introduced on Blinkit, Zomato’s quick-commerce platform.

Zomato said this is an experiment for now. “This is in an experiment phase right now, and we may or may not scale,” said a Zomato spokesperson.

This comes at a time when Swiggy has also announced levying a platform fee of ₹2 on all food orders.

Zomato has reported a net profit of ₹2 crore in the three months to June, helped largely by the reversal of a tax amount. Zomato said its food delivery business posted adjusted revenue of ₹1,742 crore in the first quarter as compared to ₹1,470 crore in the year-ago period. Revenue for quick commerce (Blinkit) was at ₹384 crore, up from ₹164 crore in the year-ago quarter.

Revenue from Hyperpure, the B2B business, was at ₹617 crore as compared to ₹273 crore in the first quarter of the last fiscal.

Zomato Managing Director & Chief Executive Officer (CEO) Deepinder Goyal said the company has been working hard to make its business less complex, and putting the right people at the right spots within its businesses.

“...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.

Published on August 6, 2023 04:53

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