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Zomato collected Rs 83 cr in platform fee from customers till March

YourStory

YourStory · 1y ago

Zomato collected Rs 83 cr in platform fee from customers till March

Food delivery aggregator Zomato has collected Rs 83 crore through its platform fee on orders from August 2023 to March 2024, according to the company's annual report. The platform fee is cited as one of the key factors driving Zomato's Adjusted Revenue, which grew 27% year-on-year to Rs 7,792 crore in FY24. Zomato began charging a platform fee of Rs 2 per order in August, which has since been increased to Rs 6 in key markets. The introduction and increase in platform fee is part of Zomato's strategy to enhance profitability, similar to its rival Swiggy.

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Holi surcharge? Swiggy Instamart introduces festive handling fee on orders

YourStory

YourStory · 5m ago

Holi surcharge? Swiggy Instamart introduces festive handling fee on orders

Swiggy Instamart introduced a 'festive handling charge' for orders during Holi, marking its first-time surge fee, similar to other quick-commerce platforms. The fee ranges from Rs 8.90 to Rs 20, varying by location. While some platforms, like Blinkit, don't charge a platform fee, others like Zepto do. Despite being small, platform fees significantly boost revenue. For instance, Zomato collected Rs 83 crore between August 2023 to March 2024, contributing to 27% YoY revenue growth.

Zomato hikes platform fee for users to Rs 5; pauses intercity deliveries

Economic Times

Economic Times · 1y ago

Zomato hikes platform fee for users to Rs 5; pauses intercity deliveries

Food delivery platform Zomato has increased its platform fee for customers by 25% to Rs 5 per order, effective April 20. The fee increase, applicable in key markets including Delhi, Bengaluru, Mumbai, and Hyderabad, is expected to boost the company's earnings. Zomato's rival, Swiggy, already charges Rs 5 as a platform fee on food delivery orders. Zomato's platform fee is in addition to the delivery charge, but it is waived for Zomato Gold loyalty programme members. The fee was initially introduced in August 2023 at Rs 2 per order and was increased to Rs 4 earlier this year. The intercity delivery service, Legends, has been temporarily suspended by Zomato due to low consumer traction and legal issues.

Swiggy to charge restaurants collection fee

YourStory

YourStory · 1y ago

Swiggy to charge restaurants collection fee

After Zomato, food and grocery delivery platform Swiggy is now set to charge restaurants a collection fee of 2% on all orders to facilitate online payments from customers on the platform. The fee will be implemented from December 20. Swiggy's move comes nearly four to five years after rival Zomato introduced a payment gateway fee.

Consumer internet companies charge per order fees to up margins

Economic Times

Economic Times · 1y ago

Consumer internet companies charge per order fees to up margins

Consumer internet platforms like Uber, BigBasket, Zomato, and Swiggy are now charging per order fees to optimize unit economics and increase profitability. Uber is imposing a distance-based 'booking fee' on its cab services, while BigBasket has introduced a Rs 5 handling charge on its quick commerce platform. Zomato and Swiggy already charge a platform fee of Rs 2 on food delivery orders. These charges aim to cover operational costs and reflect the cost of providing convenience to customers.

Zomato pilots Rs 2 platform fee in some markets

Economic Times

Economic Times · 2y ago

Zomato pilots Rs 2 platform fee in some markets

Zomato, the Indian food delivery and restaurant aggregator platform, is testing a platform fee of Rs 2 (approximately $0.03) in select markets. This nominal fee is being introduced to help cover payment gateway charges. The pilot program is part of Zomato's efforts to explore various revenue streams and sustain its services while minimizing the impact on customers and restaurant partners.

Zomato hikes platform fee on food delivery to Rs 10 during festive season

Economic Times

Economic Times · 10m ago

Zomato hikes platform fee on food delivery to Rs 10 during festive season

Gurgaon-based food delivery platform, Zomato, has increased its platform fee for food delivery transactions to Rs 10 per order during the festive season, up from Rs 7. The fee helps cover operational costs and is aimed at maintaining services during the busy period. Zomato's rival, Swiggy, also charges a platform fee and has progressively increased it to Rs 7. These fees are additional charges applied to each food order and contribute to the companies' revenue. The platform fee increase is expected to boost the take rates for Zomato and Swiggy as they handle millions of daily food delivery orders.

Ride-hailing platform Rapido venturing into food delivery

VCCircle

VCCircle · 2m ago

Ride-hailing platform Rapido venturing into food delivery

Rapido, a ride-hailing platform, is entering the food delivery market with a new model, charging restaurants a fixed fee per order instead of a commission like competitors Swiggy and Zomato. This approach aims to keep menu prices consistent with in-store dining, avoiding inflated costs due to commission fees. Customers will pay a small delivery fee for orders below Rs 100, while orders above Rs 100 incur no extra charge. Rapido plans to introduce a restaurant subscription fee later.

Zomato receives Rs 402 crore show cause notice over unpaid GST on delivery charges

Economic Times

Economic Times · 1y ago

Zomato receives Rs 402 crore show cause notice over unpaid GST on delivery charges

Zomato, the online food ordering platform, has received a Rs 402 crore show cause notice from GST authorities for unpaid tax on delivery charges. The notice was issued by the Directorate General of GST Intelligence (DGGI) and demands the alleged tax liability be paid for the period from October 2019 to March 2022. Zomato argues that it is not liable to pay tax on the delivery charges as they are collected on behalf of the delivery partners. The company will be filing a response to the notice.

Why GST authorities sent show cause notice of Rs 401.7 crore to Zomato

IndianStartupNews

IndianStartupNews · 1y ago

Why GST authorities sent show cause notice of Rs 401.7 crore to Zomato

Foodtech giant Zomato has received a show cause notice demanding an explanation for an alleged tax liability of Rs 401.70 crore. The Directorate General of GST Intelligence claims that delivery charges collected from customers are subject to GST. However, Zomato argues that it is not liable for this tax, as the delivery charges are collected on behalf of the delivery partners and not as revenue for the company. Zomato plans to file a comprehensive response to the notice, expressing confidence in the merit of its case. The issue of GST on delivery fees is also faced by Zomato's rival, Swiggy.

Not liable to pay any tax: Zomato on ₹402 crore tax notice

CNBC

Not liable to pay any tax: Zomato on ₹402 crore tax notice

Zomato has received a show cause notice over an alleged tax liability of ₹401.70 crore. It's based on the amounts collected as delivery charges from the customers on behalf of the delivery partners. "The company strongly believes it's not liable to pay any tax since delivery charge is collected by the company on behalf of the delivery partners," Zomato said.

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