Zomato in soup again: Now, delivery partners logout amid incentive cuts

By: and |
Published: September 17, 2019 11:22:19 AM

After landing in a row with restaurants and hotels last month, food aggregator Zomato is now facing the heat from its delivery partners as thousands of executives logged out of the platform over incentive cuts.

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After landing in a row with restaurants and hotels last month, food aggregator Zomato is now facing the heat from its delivery partners as thousands of executives logged out of the platform over incentive cuts. Many delivery partners of one of the leading food delivery services — Zomato– protested in Mumbai and Bengaluru over revised compensation structure, a Zomato executive told Financial Express Online. While the pressure is mounting for delivery partners to deliver food orders in less time, the company is also cutting down the incentives paid from Rs 20 per order to Rs 18.6 or Rs 850 for 46 touchpoints, several media reports said.

“Different metrics such as base pay, user satisfaction, delivery touchpoints, minimum guarantee etc. help us appreciate our delivery partners in accordance with their efforts. Reduced average delivery time (less than 30 mins) and increased system efficiency have enabled our delivery partners to perform more deliveries in the same amount of time. We regret the inconvenience caused to our users and are continuously working to resume our services in the affected areas,” a Zomato spokesperson said. 

Milestone alert: Our delivery partners’ monthly income has crossed ₹200 crore for the first time. And we have just hit 2,30,000 delivery partners in India.

In September alone, we aim to add 10,000 new jobs as a result of direct employment/contracts with Zomato.???? pic.twitter.com/uGyGG37TK9

— Deepinder Goyal (@deepigoyal) September 5, 2019

Zomato had earlier claimed that its delivery partners earn about Rs 20,000 for eight hours work per day for five days a week. However, according to many delivery persons, they also have to bear the cost of petrol and telephone. For some, the same means that they have to work for 14-15 hours a day to make ends meet. While this is not the first incentive revision that Zomato has brought in the last several years, rivals like Swiggy and UberEats doubled the payouts last year to rope in more partners. 

Earlier, Zomato also had a fallout with thousands of restaurants over its Gold and Infinity paid subscription. While restaurants claimed that the then-existing program was unsustainable for them, Zomato proposed to limit the benefits to users. Restaurants then declined to comply with the new rules. Zomato subsequently had to pause the program stating that it is working on feedback to tweak the program. 

 

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