Zomato implements platform fee similar to Swiggy’s model

Following the footsteps of Swiggy, prominent foodtech player Zomato has introduced a platform fee of INR 2 per order for specific users on its platform.

Experimental Phase with Potential Expansion

A spokesperson confirmed implementation. They mentioned it’s in experimental phase, unsure if it’ll be expanded.

‘Flat Fee’ for Enhanced Platform Features

The newly introduced ‘flat fee’ will be applicable regardless of the cart value and is aimed at enhancing features on Zomato’s platform.

Zomato Customer Responses and Impact

Zomato clarified to a customer query on X (formerly Twitter). Platform fee provides doorstep convenience and enhances user experiences.

The fee will not only affect regular Zomato users but also extend to customers of its loyalty program, Zomato Gold. However, this change has not yet been rolled out on Zomato’s quick-commerce platform, Blinkit.

Zomato Creating Additional Revenue Source Amid Profitability

Zomato has followed Swiggy’s lead by introducing a platform fee of INR 2 per order. Swiggy initiated this fee earlier. Zomato aims for extra revenue through this move, despite the time lag.

With the platform processing approximately 1.3-1.5 million orders daily, the INR 2 per order fee could potentially generate over INR 26 lakh in additional daily revenue, translating to around INR 94 crore annually.

Zomato’s recent report of its first profitable quarter, highlighting a profit after tax of INR 2 crore in the first quarter of the fiscal year 2023-24. The platform fee aligns with Zomato’s confidence in sustaining profitability.

While Zomato’s CFO expressed optimism about the company’s profitability outlook, he remained non-committal about the platform fee’s implementation during a post-earnings call. As the platform diversifies its offerings, including the experimental platform fee, its impact on order volumes and potential expansion remain subjects of interest.

Also Read The Latest News:
WhatsApp testing email verification feature for enhanced account access

The post Zomato implements platform fee similar to Swiggy’s model appeared first on StartupNews.fyi.