Zomato shares jump amid rising platform fee in food delivery industry

Zomato Share Price: Zomato is trading higher in morning deals on BSE on Wednesday (January 24, 2024) a day after Swiggy increased the platform fee from Rs 5 to Rs 10 for a small set of users. 

Zomato was trading up by 1.65 per cent, or Rs 2.15, at Rs 132.20 at 9:33 am on Wednesday. 

Swiggy spokesperson said this is an experiment to understand consumer choices.

"Swiggy has not changed its platform fee, and has no plans for a significant increase in the near term. We're always running small experiments to better understand the consumer’s choices. This was one such experiment, and we may or may not scale it up in the future if it doesn't meet our goal of serving our users in the best way possible. We're always looking for ways to make our platform more affordable, and our latest offering, Pockethero, is another example of that. Pockethero is designed for budget-conscious consumers, and we're expanding it across the country right now," Swiggy said in a statement on Wednesday.

Why Swiggy increased platform fee? 

It is being seen as a strategic measure to reduce losses before IPO.

Swiggy plans to launch IPO worth around Rs 8000 crore this year.

Food delivery companies deliver 15-25 lakh orders a day.

Swiggy started charging Rs 2 platform fee from April 2023.

The fee became Rs 3-5 in November and after that, there was no change.

Zomato share performance

The stock's 52-week high is Rs 141.55 while its 52-week low is Rs 44.35.

The market capitalisation stands at Rs 1,14,940.53 crore.

The stock has jumped by 5.76 per cent in the last one month.

Its rise in the six-month period is 62.67 per cent, while it has skyrocketted by 153.74 per cent in the last one year.

The benchmark Nifty 50, meanwhile, has slid 0.83 per cent in the one month, has soared by 8.08 per cent in the six months and 17.35 per cent in the one-year period.