Zomato increases platform fee to Rs 10 ahead of festive season

Zomato has raised its platform fee from Rs 7 to Rs 10 ahead of the festive season. A notification on the app explained, "This fee helps us pay our bills to keep Zomato running. To maintain services during the festive season, it has increased slightly."

The Deepinder Goyal-led Zomato has increased its platform fee by 400% in just over a year. Initially introduced at Rs 2 in August 2023, the fee was part of the company’s efforts to improve margins and achieve profitability.

The platform fee was subsequently raised to Rs 3 later that year, Rs 4 on January 1, 2024, and temporarily to Rs 9 on December 31, 2023. In total, Zomato has raised the platform fee six times so far. Zomato's rival, Swiggy, currently charges a platform fee of Rs 7.

Recently, the company reported a consolidated net profit of Rs 176 crore for the second quarter ending on September 30, 2024, a significant rise from the Rs 36 crore net profit recorded in the same quarter last year. Meanwhile, total expenses for the quarter stood at Rs 4,783 crore, up from Rs 3,039 crore in the corresponding period last year, the company stated.