The surcharge, which ranges between Rs 15 and Rs 35, is aimed at supporting delivery partners during adverse weather conditions. The move is in line with the companies’ broader efforts to enhance profitability, particularly as losses in their quick commerce verticals continue to mount.
Food delivery remains the core revenue driver for both platforms. In the March quarter, Zomato’s food delivery segment (under its parent Eternal) reported an adjusted EBITDA of Rs 428 crore, a 55% year-on-year increase. Swiggy’s food delivery EBITDA stood at Rs 212 crore, registering a fivefold jump year-on-year. These gains underscore the growing reliance on food delivery to sustain overall financial performance.
On the BSE, Zomato shares rose 2% to touch a day’s high of Rs 247.2, while Swiggy shares climbed 3.3% to Rs 326.8 in Friday’s trade.
Zomato Q4 performance
Eternal, the parent company of Zomato, reported a steep 78% year-on-year (YoY) fall in net profit during the March quarter at Rs 39 crore as losses from quick commerce arm Blinkit continued to weigh on the bottom line. The Gurugram-based company’s operating revenue surged 64% on-year to Rs 5,833 crore, primarily led by growth in Blinkit, which has come neck-to-neck in terms of gross order value (GOV) to food delivery. Blinkit’s growth came at the cost of its operating losses increasing 75% sequentially to Rs 178 crore.
Food delivery, the company’s mature business, continued to grow slowly. CEO Deepinder Goyal attributed the sluggish pace to weak discretionary spending and the rising influence of quick commerce on both operations and demand.
Market share, however, remained stable with hopes of some gains going forward, Goyal said.
Food delivery order volumes were impacted after Zomato delisted around 19,000 restaurants during the March quarter, Goyal said. These restaurants were taken off Zomato for not passing hygiene standards, mimicking established brands, or operating multiple identical menu listings to hog more listing impressions.
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In an indication of rising dependence on food delivery for consolidated profits, the company also shuttered its 15-minute food delivery service, Quick, and its homely meals offering, Everyday. CEO Deepinder Goyal, in a letter to the shareholders, said the company saw no visible “path to profitability” for these services, “without compromising customer experience”.
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