Multiple margin levers ahead for food delivery platform Zomato's stock

Zomato hiked its platform fee for food delivery from Rs 3 to Rs 4 per order in key markets effective from January 1, 2024.

It had begun levying a convenience fee of Rs 2 per order from August 2023, which was subsequently raised to Rs 3 per order.

The resultant convenience fee was a driver of 60 basis points (bps).

The food delivery adjusted revenue grew 21.8 per cent year-on-year (Y-o-Y) in Q2FY24 versus 18.5 per cent Y-o-Y in Q1FY24.

The adjusted operating profit as a percentage of GOV (gross order value), which was at 2.5 per cent in Q1FY24