Zomato Revises Payment Structure In NCR: Faces Protest By Delivery Personnel

Key Highlights

200 delivery agents in Delhi protesting outside Zomato’s Pushp Vihar office against reformation in incentive structures.

Zomato has 150,000 delivery partners spread in 170 cities in India.

Zomato from Monday revised its payment structure by paying Rs. 30 fixed pay per delivery and Rs. 10 according to reviews of the customer.

Zomato after taking a move to reform incentive structures for delivery personnel in the National Capital region, Delhi has to face strike from approximately 200 delivery agents in Delhi. Online food ordering and delivery giant Zomato revised payment structure came into action by this Monday, due which few of delivery personnel consulted management for the issue. 

Zomato has 1.5 lakh delivery partners in its registry and each day 150 delivery partners are getting added to it. Thus making it a workforce giant. A Zomato delivery agent hired on contract basis on an average earns Rs. 30,000 – 40,000 per month. Previously Zomato used to pay a fixed amount of Rs. 40 per delivery but now from Monday onwards it is paying Rs. 30 fixed per delivery and Rs. 10 according to reviews of the customer. 

According to the statement of a Zomato delivery executive protesting outside Zomato’s Pushp Vihar office, “The Company ceased monthly incentives from January which was according to a number of orders delivered and the revised payment structure has reduced our monthly payouts too.” In December Zomato delivery executives from Chandigarh also faced the same issue then after a protest of delivery Agents Company has to revise its payment structure. Recently Zomato has 150,000 delivery partners spread in 170 cities in India and pays a flat 500Rs to the delivery executive for 12 hours shift with a minimum delivery of eight orders per day.

 Zomato is soon raising funds from new investors including Shunwei Capital and Delivery Hero. The company on taking a move to profitability by 2021 has made a deal with the Delivery hero by selling its UAE delivery business to it. It has also put a step in Business to Business supply chain management by launching Hyper-Pure. Under this initiative, it would be delivering fresh meat and beverages and dairy products. 

The company is trying its level best to give a tough competition to food delivery giant Swiggy, which is recently valued $3.3 Billion after having massive funds from Naspers, A South African conglomerate. Recently Zomato has raised $210 Million from Ant Financial, Alibaba’s payment affiliate. Ant Financial has taken a 10% stake of Zomato worth around $2 Billion. Zomato had also raised an additional $150 Million from same Ant Financial at the end of 2018.

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