Food delivery giant Zomato has revealed that its newly introduced platform fee has generated ₹83 crore in revenue for the fiscal year 2023-24. This fee, which was implemented in August 2023, is highlighted as a key factor in the company’s 27% year-on-year growth, bringing its adjusted revenue to ₹7,792 crore for FY24.
Key Drivers of Revenue Growth
According to Zomato’s annual report, three main factors have driven the increase in adjusted revenue:
- Increased Restaurant Commission Take-Rates: Higher commissions from partner restaurants.
- Improved Ad Monetization: Better monetization of advertising space on the platform.
- Introduction of Platform Fee: The new fee was implemented from Q2FY24 onwards.
These factors have effectively offset the reduction in customer delivery charges due to free delivery benefits offered on Zomato Gold orders.
Platform Fee Implementation
Zomato began charging a platform fee of ₹2 per order last August, which has since increased to ₹6 in key markets. This fee is part of the company’s strategy to enhance profitability amidst rising competition in the food delivery sector. Zomato’s main rival, Swiggy, also charges a platform fee on its orders.
Regional Insights and Order Trends
The report also provided insights into regional order trends. Delhi NCR saw the highest number of late-night orders, while Bengaluru led in breakfast orders.
The introduction and adjustment of the platform fee are viewed as strategic moves by Zomato to strengthen its financial position and improve its market competitiveness.
