Zomato has doubled the platform charge in several key regions, including the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow. Zomato shares began at INR 193.00, 2% higher than their previous closing of INR 189.20. Meanwhile, Zomato has also discontinued their intercity delivery service, Legends.
Zomato, the food tech giant, has increased its platform cost by 25% to INR 5 every order and stopped its interstate delivery service interstate Legends.
Zomato has upped its platform price in important cities such as the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow.
Zomato’s shares began at INR 193.00 on Monday (April 22), up 2% from the previous closing of INR 189.20.
According to sources, Zomato processes between 2-2.2 million orders every day, therefore a small INR 1 increase for a wider user base may considerably raise the company’s earnings within a quarter.
Earlier this year, Zomato hiked the platform price to INR 4 per order across key countries from INR 3 on January 1.
Meanwhile, Zomato has stopped Intercity Legends, its intercity delivery service. The intercity portion of the Zomato app read: “Closed now.” We’ll be back soon”. It further stated, “Enhancements are under underway. Please stay tuned; we’ll be back to serve you soon.”
Initially established in 2022, the service allowed meal delivery from particular restaurants in specified cities to a limited number of urban areas. However, Zomato modified the approach last year, allowing for the delivery of pre-stocked commodities from several cities within a shorter delivery time.
With various experiments planned for 2023, Zomato began charging a platform charge on orders on its site in August of last year, starting at INR 2 and growing to INR 3 in large countries.
Zomato’s nearest competitor Swiggy likewise began charging an INR 2 fee, which was eventually increased to INR 3.
Both platforms charge a platform fee in addition to the delivery charge, although this fee is waived for clients engaged in their loyalty programs. However, members of Zomato Gold and Swiggy One will continue to be charged a platform fee.
Zomato’s earnings has increased significantly over the last three quarters as both platforms focus on profitability.
Zomato declared a consolidated profit after tax (PAT) of INR 138 crore in the December quarter (Q3) of fiscal year 2023-24. The company’s operating revenue increased to INR 3,288 crore in Q3 FY24 from INR 2,848 crore in Q2 FY24.
Zomato just introduced an all-electric ‘big order fleet’ that can transport huge orders for up to 50 people at once.
Deepinder Goyal, Zomato’s founder and CEO, stated that the new vehicles would alleviate the majority of the challenges that clients have while placing huge purchases.
