Zomato shares jump 4% to fresh all-time high on platform fee hike
Zomato's shares surged 4% to a new high of Rs 232 on BSE after raising platform fees to Rs 6 per order in major markets like Bengaluru and Delhi. The firm, along with Swiggy, initially charged Rs 2 per order last year, later increasing it to Rs 5 in select markets. The recent price hike represents an increase of 20% from the Rs 5 the two platforms were previously charging in these markets.
Shares of foodtech firm on Monday jumped over 4% to hit a fresh all-time high of Rs 232 on BSE after it increased the platform fee to Rs 6 per order in key markets like Bengaluru and Delhi.Zomato and its peer Swiggy had started charging platform fees last year and were initially charging Rs 2 per order which eventually rose to Rs 5 in some markets.
The recent price hike represents an increase of 20% from the Rs 5 the two platforms were previously charging in these markets. In Bengaluru, Swiggy is currently also teasing a platform fee of Rs 7, which is struck-off and discounted to Rs 6 at checkouts, ET reported earlier.
Earlier in April, Zomato increased its platform fee to Rs 5 per order from Rs 4 in key markets including the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow.
Platform fees are seen as essential to delivery firms as they look to improve their take rates, which determine the amount of money they make on every order. With a duopoly in place, both Zomato and Swiggy have been experimenting with platform fees to boost their overall revenues and profits.
have been on an uptrend for a longer time frame and have rallied around 175% in the last year.
Last month, global brokerage CLSA gave a target price of Rs 248 per share on the new-age stock, while noting that Zomato is well ahead of IPO-bound peer Swiggy.
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Source: Stocks-Markets-Economic Times
