Here’s Why Zomato Will Charge Extra Rs 2 On All Orders – Top Speed News

Taking inspiration from its rival platform Swiggy, food delivery service Zomato has now started charging a ‘platform fee’ of Rs 2 per order. The tiny fee has reportedly been implemented in a few niche areas and is currently in an experimental phase. It should be noted that Swiggy began charging the fee four months ago. Zomato’s quick commerce platform Blink It, is still free of the platform fee for now. The pop-up, where the Rs 2 charge is levied, says that the fee is to ‘help pay bills and keep Zomato running’. This fee of Zomato will be applied uniformly on all orders. Whether the order is of Rs 200 or Rs 800, the charge levied will be confined to Rs 2 per order. A spokesperson of Zomato has indicated that this experimental action may or may not scale in the future.

This announcement of Zomato has come at a time when the quarterly results of the company have been released recently, which are quite satisfactory. Zomato earned a 12 million dollar profit in its first quarterly report of the fiscal year 2023–2024, which is the first time the company has ever done so. The company noted the increase in Adjusted EBITDA was caused by both revenue and cost-side levers in a message to shareholders. In the June quarter, the company’s income increased by 64 per cent and reached Rs 2,597 crore. In the same period of the last financial year, the company incurred a loss of Rs 186 crore, which this time turned into a huge profit.

In April, Swiggy introduced a platform fee. Sriharsha Majety, the company’s CEO and co-founder, attributed the choice to a downturn in the delivery sector. The business stated that the extra fee only applied to food orders and not to Instamart delivery. Customers will pay more for deliveries as a result of the change. Restaurant orders placed through meal delivery services like Zomato and Swiggy are subject to a 22–28% commission fee.