Zomato Raises Platform Charges by 25%: Annual Revenue Soars to Rs 90 Crore

Zomato has recently increased its platform fee, resulting in a slight rise in food delivery costs. The company has raised the platform fee by 25%. Consequently, customers will now have to pay a platform fee of ₹5 instead of ₹4 for each order.

Zomato handles approximately 85-90 crore orders annually, translating to around 24 lakh orders per day. With the increase in platform fee by ₹1, the company’s annual EBITDA is expected to rise by ₹85-₹90 crore.

The platform fee was initially set at ₹2 in August 2023. Subsequently, it was raised to ₹3 and then to ₹4 starting January 2024. As of December 31, 2023, the company had collected ₹9 as platform fee from customers.

Following this, the company has suspended its intercity food delivery service, known as ‘Intercity Legends’. Through this service, the company used to deliver orders from major restaurants in big cities to customers in other cities.

Zomato’s shares have surged by 242.14% in the past year.

Today, Zomato’s shares have seen an increase of 1.24%. Over the last 5 days, the company’s shares have risen by 2.16%, in a month by 9.99%, in 6 months by 75.94%, and over the past year by 242.14%. The company has given shareholders a 53.90% increase in value this year. Zomato’s market capitalization is ₹1.66 lakh crore.

In Q3FY24, the company’s net profit was ₹138 crore.

For the third quarter (October-December) of the financial year 2023-24, Zomato reported a net profit of ₹138 crore. This marks a significant improvement compared to the same quarter (Q3FY23) a year ago when the company incurred a loss of ₹346.6 crore. The quarterly net profit increased by 283% quarter-on-quarter (QoQ). The company had reported a net profit of ₹36 crore in the July-September quarter, i.e., Q2FY24.

Revenue increased by 69% to ₹3,288 crore.

In Q3, the company’s consolidated revenue also increased by 69% annually to ₹3,288 crore. In the corresponding period of the previous financial year, the company had recorded revenue of ₹1,948 crore.

First-time net profit of ₹2 crore in 15 years.

For the first time in 15 years, the company reported a net profit of ₹2 crore in the first quarter of the financial year 2023-24. This was the first time since its establishment in 2008 that the company recorded a net profit. A user humorously commented on this achievement.