Keeping the rising fuel prices in mind, Zomato revises delivery partner remuneration

Gurugram-based unicorn Zomatohas stated that the rise in fuel prices has had a direct impact on the net earnings of its delivery partners. According to the statement issued by the restaurant aggregator, a Zomato delivery partner travels anywhere between 100-120 km in a day, consuming 60-80 litres of fuel in a typical month.

It added that the recent increase in petrol and diesel prices amounts to an additional monthly spend of Rs 600 to Rs 800, close to three percent of the take-home monthly income of the delivery partners.

"Taking this into consideration, Zomato has introduced a revised pay structure for its delivery partners which will now include an additional component of distance pay. This component will be applicable over and above the existing remuneration, and will automatically be pegged to adapt to any changes in fuel prices in the future," said the statement.

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"We are committed to making Zomato the best place to work for our delivery partners. We understand how fuel price hikes can impact their earnings and have decided to factor in such developments in their pay structure. Both of these inclusions combined will increase their earnings by 7-8 percent. We have already implemented the new structure in about 40 cities and will be rolling it out in other cities in the coming week," said Mohit Sardana, COO- Food Delivery, Zomato in the press statement.

The foodtech unicorn has also identified that the high fuel prices would further impact long-distance orders since delivery partners are required to return back to their base-working localities to get another order assigned.

"Keeping this in mind, Zomato has introduced long-distance return pay where for every long-distance order completed, its delivery partner would either receive another order within 15 minutes that would bring them back closer to their base areas of working, or they will receive an additional payout for travelling the extra distance," said the statement.

It also stated that Zomato has increased its focus to understand and proactively solve for concerns raised through a weekly survey that they conduct with their delivery partners. Zomato has 1.5 lakh delivery partners in its fleet.