In order to ensure that the dramatic increase in fuel prices over the past few days does not impact the net take-home earnings of their delivery partners, Zomato has introduced a revised pay structure for them, which will include an additional component of distance pay.

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The fuel price rise has led to a direct impact on the net earnings of Zomato delivery partners who travels around 100-120 km in a day, consuming 60-80 litres of fuel a month. The recent increase in prices amounts to an additional monthly spend of Rs 600-800 (about 3 percent of their monthly income) from his/her take-home income.

Our delivery partners travel 100-200 kms/day to deliver food to our customers. The increase in fuel prices has increased their monthly spend on fuel by ₹600-800 (~3% of their monthly income). (1/n)

— Deepinder Goyal (@deepigoyal) February 25, 2021

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Zomato has also identified that the impact of fuel price rise in case of long-distance orders since delivery partners are required to return to their base. Keeping this in mind, it has introduced long-distance return pay where for every long-distance order completed, its delivery partner would either receive within 15 minutes another order en route to their base areas or they will receive an additional payout for travelling the extra distance.

This increase has been rolled out in 40 cities already, and will follow in other cities very soon. This new pay structure is designed to automatically adapt to any future changes in fuel prices. (3/n)

— Deepinder Goyal (@deepigoyal) February 25, 2021

Mohit Sardana, chief operating officer, food delivery at Zomato, said it is committed to making Zomato the best place to work for the 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 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."

Zomato has around 1.5 lakh delivery partners and has been strengthening its fleet further. Last December, Zomato introduced fixed salary structure for its delivery partners.

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As per the scheme, the partners are paid on a fixed-hour basis — 60-65 hours a week. This new payment scheme ensures that a monthly payout of Rs 26,000 to Rs 28,000 is made to the delivery executives’ bank accounts.

First Published:Feb 25, 2021 3:29 PM IST