• Source:JND
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Zomato Platform Fee Hike:  In a surprising move for its customers, Zomato has raised its platform fee by 25% to Rs 5 per order. The announcement comes just weeks before the company is expected to release its March quarter financial results. In addition, Zomato has suspended its Intercity Legends food delivery service as well.

Earlier, Zomato hiked the platform fee by Rs 2 in August 2023 to increase its margin and make the company profitable. Later it was raised to Rs 3 and then to Rs 4 on January 1. On December 31, the firm temporarily increased the platform fee to Rs 9.

According to media reports, the increase in platform fees will partially offset the impact of GST on delivery charges. Zomato fulfills roughly 85-90 crore orders each year,  every Re 1 rise in the convenience fee might positively impact EBITDA by Rs 85-90 crore, which is roughly 5%. However, this increase is currently only valid in specific cities.

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Zomato has discontinued its Intercity Legends service, which used to deliver orders from top restaurants in major cities to customers in other cities. Clicking on the 'Legends' tab on the Zomato app now displays a message stating that "Enhancements are in progress. Please stay tuned as we will be back in service soon."

Revenue doubled to Rs 644 croreZomato's food delivery business reported 30 percent year-on-year growth in adjusted revenue to Rs 2,025 crore in the December quarter. Blinkit's revenue also doubled to Rs 644 crore during this period. Zomato's stock price has been rising due to the increase in profits from its core business and the rapid growth of Blinkit.

Zomato reported a consolidated profit of Rs 138 crore, compared to a net loss of Rs 347 crore a year ago. Revenue also increased to Rs 3,288 crore from Rs 1,948 crore in the previous year.

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