- February 26, 2021 / 7 min readTo counter this, the company said it has introduced an additional ‘distance pay’ component, over and above the remuneration.
Gurgaon-based food delivery brand Zomato announced on Thursday that it has increased the earnings of its delivery executives by 7-8% to make up for the skyrocketing prices of petrol and diesel.
Petrol prices have already hit Rs 100 a litre in few cities, with the price of diesel not far behind.
According to the food delivery major, the increase in fuel prices has hiked delivery executives’ monthly spending by Rs 600 to Rs 800 on average, eating into their take-home income.
To counter this, the company said it has introduced an additional ‘distance pay’ component, over and above the remuneration that its delivery executives currently receive, and will also adapt to changes in fuel prices in the future.
“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,” shared Mohit Sardana, COO, Food delivery, Zomato.
It has also factored in an additional payout for long-distance journeys, as delivery partners often return to familiar localities after making a delivery far away. The company said it will either try to match delivery executives with an order that takes them back to their base locality within 15 minutes, or pay them an additional amount for travelling far.
The company said that it will bear the cost of the increased remuneration, and will not pass it on to its customer or restaurant partners.
Zomato has already rolled out the new remuneration model in 40 cities and will roll it out in other cities in the coming week. The company said it has over 1.5 lakh delivery partners and is continuing to increase this number to meet a rising demand for food delivery.
According to Zomato, its delivery partners travel anywhere from 100 to 120 kilometres a day, and use 60 to 80 litres of fuel in a month. The recent fuel price hikes have thus increased their running costs by Rs 600-800, which is about 3% of their monthly income.
Earlier this week Zomato closed a $250 million funding round led by existing investors Tiger Global, Kora and Fidelity at a valuation of $5.4 billion.
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