Zomato share price: In order to benefit the rapidly in transactions due to increase in demand in the festive season, the legendary company Zomato has increased its platform fee from the earlier Rs 10 to Rs 12 per order. However, this lead looks modest. But this will help in earning more profits on orders and increasing the total profits of the company. The company has increased the platform fees after 1 year. The company’s platform fees have increased 6 times in 2 years. Initially the increased fees will be applicable in 40 percent of the country. Gradually it will be implemented in the rest of the country.
Zomato rival Swiggi has also increased its platform fee by Rs 2 to take advantage of the festivals. Due to which its platform fee has increased to Rs 14 per order.
Explain that there is an additional fee to be levied on every order from both the platform fee, Zomato and Swigi. This is a fee levied in addition to other charges like delivery fee, GST and restaurant fees. For the first time in April 2023, this order started at the rate of only Rs 2 per order has been increased by Zomato by 6 times in the last two years.
The current order volume of Zomato is approximately 2.3–2.5 million orders per day. A platform fee of Rs 12 can generate up to Rs 3 crore for the company. When this fee was Rs 10, the company used to earn around Rs 2.5 crore per day. The company may have additional income of up to Rs 45 crore per quarter as the platform duty increases.
Although the increase of Rs 2 may seem modest to users, but from the perspective of daily transactions, its total effect can improve the financial health of the company.