Zomato Fee Hike: Big setback for food lovers. The price of ordering food through Zomato has gone up. The company will now impose an extra charge of Rs 5 for cash on delivery. It’s important to remember that there is already a platform fee in place. With this new adjustment, customers will need to spend more.
There is a specific note on the bill
Zomato’s billing summary will now feature a pay-on-delivery fee. As reported by Money Control, customers opting for cash on delivery will incur this charge. In some instances, users are facing fees ranging from Rs 7 to Rs 20. This new charge is in addition to Zomato’s platform fee, restaurant packaging costs, and GST. Zomato’s move comes at a time when competition in the industry is intensifying, with new players entering the market. Many customers are increasingly drawn to Rapido Ownly, while Flipkart is experimenting with its own food delivery service. Additionally, the startup Swish has successfully secured funding. Meanwhile, Swiggy continues to be a strong presence in this market.
Significant earnings from a small increase
Although a Rs 5 hike may seem trivial, it could greatly enhance the company’s revenue. Zomato processes between 2.3 million and 2.5 million food orders each day. This suggests that the company could generate an extra Rs 11.5 million to Rs 12.5 million daily. Over a year, this amounts to around Rs 4.2 billion to Rs 4.56 billion.
What is the status of Zomato shares?
On Friday, Zomato shares finished at Rs 323, reflecting a 0.78 percent increase on the BSE. The stock has appreciated by 37 percent over the last three months. In the past six months, it has risen by 44 percent. However, despite these gains, Eternal’s shares have shown a negative return of 1.54 percent over the past year. It’s noteworthy that Eternal’s share price has increased by 18 percent over two years and by 218 percent over three years.
Swiggy does not have such fees yet
The key point of Zomato’s move is that rival platform Swiggy currently doesn’t charge a separate fee for cash on delivery orders. This change could impact competition between the two platforms in the future.
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