Zomato raises platform fee to ₹10 from ₹7 to support operations during festive season; Reports ₹176 crore profit

Zomato has increased its platform fee from ₹7 to ₹10, a decision aimed at ensuring smooth operations during the upcoming festive season. The company communicated this change through a notification on its app, indicating that the fee adjustment is necessary to cover operational costs and maintain service quality as demand for food delivery services typically rises during this period.

This fee increase coincides with Zomato's recent financial performance. For Q2 2024, the company reported a consolidated net profit of ₹176 crore, a notable rise from ₹36 crore in the same quarter last year. This growth suggests that Zomato is experiencing a recovery and is able to capitalize on increasing consumer demand amid the festive celebrations.

Zomato's consolidated revenue from operations also showed significant growth, reaching ₹4,799 crore compared to ₹2,848 crore in the prior year. This upward trend indicates the company's ongoing efforts to expand its market presence and improve customer experience.

However, total expenses for the quarter increased to ₹4,783 crore, up from ₹3,039 crore in the corresponding period last year. This rise in expenses may be linked to higher logistics costs, marketing strategies to attract new customers, and investments in technology and infrastructure to enhance service delivery.

Since its introduction in August 2023, Zomato's platform fee has seen several increments, starting at ₹2 and moving to ₹3, and then to ₹4 in January 2024. The latest increase to ₹10 aligns with the company’s focus on maintaining service reliability during peak demand periods.

Additionally, Zomato's board has approved a plan to raise ₹8,500 crore through a qualified institutional placement of equity shares. This fundraising initiative is intended to support the company’s growth strategies and strengthen its position within the competitive food delivery market.