Zomato has raised its platform fee to Rs.10 from Rs.7, citing the need to maintain operational efficiency during the festive rush. This increase, applicable to all users, was announced through a notification on the Zomato app, stating that the additional charge helps the company “pay its bills” and ensure smooth service amid heightened demand.
This comes after Zomato reported a strong financial performance in Q2 FY24, posting a consolidated net profit of Rs.176 crore, a significant jump from Rs.36 crore last year. The company’s revenue surged to Rs.4,799 crore, reflecting robust growth.
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CEO Deepinder Goyal defended the hike, explaining that Zomato’s operational costs rise substantially during the festive season due to increased orders. “We want to ensure uninterrupted service during this period of high demand, and this small fee helps us manage that,” Goyal said.
However, the decision sparked mixed reactions among users. Some expressed frustration over rising fees, while others acknowledged the importance of reliable service during the holidays. In addition to the fee hike, Zomato’s board also approved raising ₹8,500 crore through equity placements, signaling its intent to fund future growth.
Economic analysts predict the hike could help Zomato cushion the impact of festive season logistics and sustain profitability going forward. Nevertheless, consumer sentiment around the rising costs of food delivery remains an area to watch.
Mukesh Agarwal, a frequent user of Zomato, voiced his concerns: “While I understand the need for reliable service during festivals, constant fee increases are discouraging for regular users.”
