Zomato, a prominent player in the food-tech industry, has introduced a nominal platform fee of ₹2 on certain orders in undisclosed markets. This charge applies to users who are subscribed to the Zomato Gold service as well, regardless of the order value. The move is perceived as a strategic step to diversify revenue streams, enhance earnings, and ensure sustainable growth.
This decision follows Zomato’s recent milestone of achieving its first-ever quarterly profit of ₹2 crore for the period April-June. The app displays a pop-up message explaining that the fee assists in covering operational costs and maintaining the platform’s operations.
During the same quarter, Zomato’s revenue surged by 64% to ₹2,597 crore, reflecting substantial progress compared to a loss of ₹186 crore reported in the previous year. The food delivery sector experienced a resurgence in demand in recent months, propelling Zomato’s growth. As of June 2023, the platform boasted approximately 17.5 million monthly transacting customers.
It’s important to note that these additional charges have not yet been applied to Zomato’s quick-commerce platform, Blinkit. The fee implementation is currently in a trial phase, with its long-term adoption contingent upon the results.
Zomato CEO Deepinder Goyal conveyed in a shareholder letter that the company is focused on streamlining its operations and ensuring optimal staffing. He noted, “…I can now say in hindsight that many of our seemingly ‘risky’ strategies have significantly altered the trajectory of the business, surpassing our expectations.”
Zomato’s competitor, Swiggy, had earlier introduced a comparable fee for all orders earlier this year.
Zomato’s shares surged to a 1.5-year high following the announcement of the ahead-of-schedule quarterly profit, indicating a promising trajectory toward sustained earnings growth. Share prices rose by over 14%, reaching a 52-week high of ₹98.39 in morning trading on the BSE.
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