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Zomato Hikes Platform Fee To INR 5, Shares Jump 4%

Inc42 · 1y ago

Zomato Hikes Platform Fee To INR 5, Shares Jump 4%

Foodtech giant Zomato has increased its platform fee by 25% to INR 5 per order in key markets, including Delhi, Bangalore, Mumbai, Hyderabad, and Lucknow. The move is expected to boost the company's earnings as it handles around 2-2.2 million orders per day. Additionally, Zomato has temporarily suspended its intercity delivery service, Intercity Legends, for enhancements. The company has been focusing on profitability, with its profit after tax reaching INR 138 crore in the December quarter of the financial year 2023-24. Recently, Zomato also introduced an all-electric 'large order fleet' for delivering orders for up to 50 people in one go.

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IPO-bound Swiggy shrugs off plans on doubling platform fee in near term

Inc42 · 1y ago

IPO-bound Swiggy shrugs off plans on doubling platform fee in near term

Swiggy has denied reports of doubling its platform fee on food orders, stating that it has no such plan for the near future. Speculations were rife that the food delivery aggregator would increase the fee from INR 5 to INR 10 to offset losses ahead of its upcoming IPO. The company clarified that it constantly experiments with offerings to understand user preferences and improve affordability. Swiggy's archrival, Zomato, recently raised its platform fee from INR 3 to INR 4. Swiggy's IPO is anticipated to take place in mid-2024.

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.

Zomato Shares Jump Over 5% Amid Block Deal Buzz

Inc42 · 1y ago

Zomato Shares Jump Over 5% Amid Block Deal Buzz

Zomato shares saw a rally, hitting INR 99.50 per share on the BSE. Around 10 crore shares, equal to a 1.17% stake in the company, were traded in a block deal at an average floor price of INR 94.70 per share, totaling about INR 947 crore. Investment firm Tiger Global exited by selling 12.24 crore shares, worth INR 1,123.84 crore, while SoftBank was reportedly considering selling additional shares. Zomato posted a Q1 FY24 consolidated profit of INR 2 crore and expanded its platform fee to achieve profitability.

Zomato Allots 10.88 Cr ESOPs Ahead Of Q3 Earnings

Inc42 · 1y ago

Zomato Allots 10.88 Cr ESOPs Ahead Of Q3 Earnings

Foodtech major Zomato has allocated 10.88 crore equity shares under its Employee Stock Option Plans (ESOPs) ahead of its Q3 FY24 earnings. The company's ESOP 2021 received the highest allotment of over 9 crore shares, while ESOP 2018 saw an allotment of 1.67 crore shares. This allotment will increase the company's issued, subscribed, and paid-up share capital to around INR 882 crore from INR 871.1 crore previously. Zomato's stock saw a 4% jump during intraday trading following this news.

Zomato Gains Over 2% To 52-Week High After HSBC Raises Target To INR 150

Inc42 · 1y ago

Zomato Gains Over 2% To 52-Week High After HSBC Raises Target To INR 150

Shares of Zomato surged by 2.5% to a 52-week high of INR 138 per share on BSE, following a target price increase by HSBC to INR 150. The brokerage firm holds a positive long-term outlook for Zomato, despite predicting subdued growth in 2024. Another analyst, Elara Securities, recommended buying Zomato stock after the platform fee for food delivery services was raised by 33%. Zomato's profitability in the food delivery business is expected to be driven by increased convenience fees, advertising income, and restaurant commissions. At the close of Thursday's session, Zomato shares were trading at INR 137.

Zomato Shares Hit Fresh All-Time High At INR 285.95 Amid Rally In Broader Markets

Inc42 · 11m ago

Zomato Shares Hit Fresh All-Time High At INR 285.95 Amid Rally In Broader Markets

Shares of Zomato reached a new all-time high at INR 285.95 apiece, resulting in a 5% jump during intraday trading on the BSE. This surge in share prices aligned with the Sensex surpassing 83,000 points for the first time. Among the new-age tech stocks covered by Inc42, 15 out of 28 saw gains ranging from 0.51% to 7.61%, with Zaggle experiencing the highest increase.

Zomato Under Fire Again: NRAI Seeks Answers on Long-Distance Fee

StartupTalky

StartupTalky · 1m ago

Zomato Under Fire Again: NRAI Seeks Answers on Long-Distance Fee

Zomato faces criticism from the National Restaurant Association of India (NRAI) over a new long-distance service fee, which charges restaurants INR 15 for deliveries between 4 to 6 km and INR 25 to INR 35 for longer distances. Restaurants argue this fee contradicts Zomato's claim of a 30% commission cap, alleging increased costs. Additionally, many are resisting a new contract from Zomato's parent company, Eternal, which includes controversial clauses. The NRAI has been in legal disputes with Zomato and Swiggy since 2021 over perceived anti-competitive practices.

Zomato hikes platform fee from ₹3 to ₹4 in key markets: Report

ETN News

ETN News · 1y ago

Zomato hikes platform fee from ₹3 to ₹4 in key markets: Report

Zomato has increased the platform fee it charges users for food delivery, from the existing ₹3 to ₹4 per order in its key markets, The Economic Times reported. The 33% increase in the fee is effective from January 1, 2024. "These are business calls which we take based on various factors from time to time," a Zomato spokesperson said.

Zomato's New Feature Allows Its Users To Make Healthier Choices

Inc42 · 1y ago

Zomato's New Feature Allows Its Users To Make Healthier Choices

Zomato has introduced a new feature that encourages users to make healthier food choices while ordering. The feature suggests alternatives like roti instead of naan and lower-calorie desserts. This move comes after the company expanded its priority delivery services to several cities. In addition, Zomato recently increased its platform fee to INR 5 per order. The company also reported its fourth consecutive profitable quarter with a consolidated profit after tax of INR 175 Cr. However, the gross order value of Zomato's food delivery business declined on a quarterly basis.

Eye On Profitability? Zepto Experiments With INR 2 Platform Fee

Inc42 · 1y ago

Eye On Profitability? Zepto Experiments With INR 2 Platform Fee

Quick commerce startup Zepto has introduced a platform fee of INR 2 per order, along with separate handling charges ranging from INR 5 to INR 20. The move aims to bolster profitability by creating additional revenue streams, following the examples of Swiggy and Zomato. Zepto also offers a membership program called Zepto Pass, starting at INR 99 per month, which provides unlimited free deliveries on orders above INR 99. The company is working towards achieving EBITDA profitability in 2024 and plans to list on the Indian bourses by 2026.

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