If you frequently order food from Zomato or Swiggy, you should exercise some caution. Zomato, a platform for online food delivery, has collected Rs 83 crore as a platform fee from customers between August last year and March this year, meaning it collected Rs 83 crore without providing any goods in return. Zomato began charging platform fees on every order starting in August last year. These fees are considered one of the three major factors contributing to Zomato’s adjusted revenue. The company’s revenue increased by 27 per cent year-on-year, reaching Rs 7792 crore in the last financial year (2023-24).
The company’s annual report said, “Adjusted revenue as a percentage of gross order value continued to grow, primarily due to increased restaurant commission rates, improved ad monetisation and the introduction of platform fees from the second quarter of last fiscal year”. All of these factors more than made up for the decrease in customer delivery charges per order due to the free delivery benefit available on Gold orders, the report added. Notably, the highest number of late-night orders in the last fiscal year came from Delhi NCR, while Bengaluru led in breakfast orders, as shared by Zomato in the report.
The food delivery aggregator began imposing a platform fee of Rs 2 per order in August last year, which has since gradually risen to Rs 6 in key markets. This increase in platform fees is among the main drivers of Zomato’s adjusted revenue, helping the company achieve a 27 per cent year-on-year revenue growth, reaching Rs 7792 crore in the last financial year (2023-24). Customers who frequently use services like Zomato and Swiggy should be aware of these platform fees, as they represent an additional cost that does not directly correspond to the value of the goods delivered. Despite this, Zomato’s strategy of implementing these fees has proven financially beneficial for the company, allowing it to maintain growth and profitability amidst changing market conditions.
Comments
0 comment