Zomato hikes platform fee to ₹10 from ₹6; here’s why

A notification on the Zomato app stated, "This fee helps us pay our bills to keep Zomato running. To maintain services during the festive season, it has increased slightly."

The food aggregator started charging a platform fee of ₹2 per order in August 2023, which was gradually hiked to ₹6 in key markets.

Platform fee is an extra charge applied to food orders. It is in addition to restaurant charges, delivery fees, and goods and services tax (GST).

In the financial year 2023-24 (FY24), Zomato collected ₹83 crore as platform fee.

Zomato hikes platform fee: Shares up

The company's market capitalisation stands at ₹2,27,220.13 crore.

The net profit missed street estimates, which analysts had pegged at ₹260 crore.

Revenue from operations rose 68.5% to ₹4,799 crore in Q2 FY25 against ₹2,848 crore in the corresponding quarter last fiscal year.

In a letter to shareholders, Deepinder Goyal, founder and CEO of Zomato, said the "District" app, which offers going-out services such as dining, movies, sports ticketing, staycations, shopping and live performances, "should be live in the next four weeks."

"At this point, we are focused on making sure we do a good job at migrating the business from Zomato and Paytm platforms to the new District app," he added.

On fundraising via QIP, Goyal said it is to strengthen the firm's balance sheet.