![How the Platform Fee Led the Zomato Founder To Become A Billionare How the Platform Fee Led the Zomato Founder To Become A Billionare](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgU_hSMM4KZpeNHcJAHlnjQsg6xyC6Iuz9Yvokp20WjdmJa4NtqUDckdbT2cjnM5POFgF0heG4xpdkRm3aoz80XYP8Vn1RlsFFX34UxP0cYh8NcASDE6nryPt2pHsxu247rmYCrMLDA5rNLFwCOo83NZdzkwfPd6qePJL5XH-bJLkVMFel3BxEq2pPjuS0/s16000-rw/Untitled%20design_20240718_121647_0000.png)
Interestingly, this milestone occurred shortly after Zomato and Swiggy increased their platform fees to ₹6 per order in key markets like Bengaluru and Delhi-NCR. The company's stock price reached a new peak of ₹232, contributing to its market cap crossing ₹2 trillion. Zomato's remarkable rise is attributed to the promising performance of its quick commerce division, Blinkit, which is expected to achieve EBITDA break-even by the first quarter of FY25. Goyal's journey from a middle-class background to leading a global food delivery brand is truly inspiring.
Zomato's impressive stock performance has been largely driven by Blinkit and the multiple increments in its platform fee.
Series of Events
Zomato reportedly raised its platform fee to ₹6 per order in metro cities. Interestingly, the Investors responded positively to this platform fee increase, reflecting "confidence in Zomato's business model" and growth prospects. The stock climbed 4% to reach an all-time high of ₹232 on the BSE. This made Zomato's market cap crossed ₹2 lakh crore ($2.394 billion) for the first time, and its shares hit a 52-week high (up 4% from the previous closing price) on the BSE.Zomato had gradually increased its platform fee from ₹2 to ₹6 per order in select cities. Ironically, the investors feel that — the consistent adjustments signaled the company's commitment to revenue optimization.
Deepinder Goyal's Net Worth: With 36.95 crore shares of Zomato (around 4.24% holding), Deepinder Goyal's net worth has risen to more than ₹8,424 crore, which is approximately US $1.01 billion, making him a billionaire at the age of 41.
Notably, Zomato processes an impressive number of orders daily, and to give an idea about how an increase of platform fee can churn out revenue vis-a-vis profits for Zomato like a tap of a button, the Goyal promoted platform delivered a staggering 647 million orders across 800 cities in India, in the financial year 2022-2023 (FY23). That translates to over 1,200 orders delivered every minute! These orders served approximately 58 million customers, with a total value of ₹263 billion. Quite a feast, isn't it?
Overall, Zomato's strategic fee adjustments, market sentiment, and growth projections collectively drove its share price upward.
Analysts anticipate strong revenue growth for Zomato in the June quarter. Factors such as continued expansion in food delivery and quick commerce (qCommerce) businesses contribute to this positive outlook.
Before this recent increase, Zomato had gradually raised its platform fee from ₹2 in August 2023 to ₹5 per order in April 2024. The company suspended its inter-city food delivery service, 'Intercity Legends,' during this period.
Zomato's impressive growth and strategic decisions have propelled it into the billionaire league, reflecting the impact of platform fees and market dynamics.
With Zomato frequently increasing the platform fees, this has sparked mixed reactions among its customers. One Bengaluru user, Sumukh Rao, expressed frustration on social media. He mentioned that the reduced free delivery range (now 7 km) and the increased platform fee (₹6 per order) prompted him to stop using the app altogether. Another user, Jay Prashanth, echoed the sentiment, emphasizing that it's not just about the money but the feeling of being price-gouged. Zomato's goal is to enhance profitability, but it remains to be seen how users adapt to this change.
Apart from the platform fee, Zomato also charges for delivery, GST, and restaurant fees. Additionally, there's a packing charge that restaurants/ shopkeepers typically don't impose.
As per few media outlets, Zomato apparently plans to evaluate the results of this trial and gather user feedback before making long-term decisions about the fee structure. Balancing revenue generation with maintaining a positive user experience remains crucial.
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