Platform Fee: In recent years, the online food delivery industry has experienced a remarkable surge, with a substantial boost following the outbreak of COVID-19. With more people preferring the convenience of home delivery, leading food delivery apps like Swiggy and Zomato have become household names. While Swiggy recently experimented with platform fees, Zomato has now joined the fray by introducing an additional platform fee on their orders.
Zomato’s Platform Fee: An Essential Game-Changer
Zomato has implemented a nominal ₹2 Platform Fee on every order, indicating its determination to maximize revenue and fuel business growth. Although this fee does not apply to Zomato’s grocery delivery platform, Blinkit, the company is undoubtedly determined to maintain profitability while expanding its new ventures.
Boosting Profits with Platform Fee
With a staggering daily influx of approximately 2 million orders on Zomato and Swiggy combined, the introduction of the ₹2 Platform Fee could yield the company an estimated daily profit of ₹40 lakh and a substantial monthly profit of ₹12 crore. This strategic move is expected to play a pivotal role in improving the company’s financial standing and fueling further growth.
Convenience and Customer Trends
The global pandemic has dramatically impacted consumer behavior, and many are now embracing the convenience and safety of online food delivery services. As customers continue to prioritize ease of access and contactless deliveries, the platform fee implementation is expected to have a minimal impact on their preference for such services.
Conclusion:
The online food delivery industry is undergoing an unprecedented transformation, driven by the surge in demand for convenient home deliveries and the influence of the COVID-19 pandemic. With Zomato’s strategic platform fee introduction, the company is poised to achieve remarkable profits while ensuring seamless service to its growing customer base. As the industry continues to evolve, businesses must adapt and innovate to stay ahead of the competition and meet evolving consumer demands.