Zomato revises Delivery Partner remuneration amid nationwide fuel price hike

The dramatic increase in fuel prices has led to a direct impact on the net earnings of Zomato delivery partners. Over this past month, Zomato has taken multiple steps to ensure that this increase in the running costs for delivery partners does not impact their net take-home earnings.

To put this in perspective, a Zomato delivery partner travels anywhere between 100-120 km in a day, consuming 60-80 litres of fuel in a typical month. The recent increase in prices amounts to an additional monthly spend of ₹600-800 (about 3% of monthly income) from his/her take-home income. 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.

Zomato has also identified that the impact of fuel price increase in case of 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, it 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.

“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%. 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 addition to this, Zomato has increased its focus to understand and solve proactively for concerns raised through a weekly survey that they conduct with their delivery partners. Zomato has 1.5 lakh delivery partners in its fleet and has been strengthening it further to meet the growing demand for food delivery in India.