Zomato's stock skyrocketed on Monday, propelling Deepinder Goyal, the CEO of the food delivery platfrom, into the billionaire club. Following the meal delivery company's increase in the platform charge, Zomato's shares began trading higher.
Zomato shares were up 2.29 percent, or Rs 227.55 a share, at 11:39 a.m. Zomato's shares reached a peak of Rs 232 per share during the day. With this, Goyal, who now owns 36.95 crore shares, or 4.24 percent of Zomato, has joined the exclusive group of billionaires.
Notably, platform fees for Zomato and Swiggy have increased by 20 percent to Rs 6 each order, from Rs 5 previously.
The platform fee is distinct from delivery fees, goods and services tax (GST), restaurant fees, and handling fees. It is currently levied in Delhi and Bengaluru. Other cities will also have the increased platform cost implemented.
It appears that the food aggregators use the platform charge to reduce expenses and boost income. Zomato increased its platform charge to Rs 5 each order in April, a 25% increase.
In August of last year, Zomato launched a Rs 2 platform charge, which it later raised to Rs 3 in order to boost its margins and turn a profit. By charging a platform charge, the food delivery platforms want to make between Rs. 1.25 and Rs. 1.5 crore every day.
