6000 Delivery Partners Rebel Against Zomato; They Are Angry Over Reduced Incentives & Income?
This time, Zomato is facing the heat from their delivery partners.
Around 6000 Zomato riders, also called delivery executives have logged out from the system since last Saturday, as a way to protest against reduced incentives, and reduced income.
How will Zomato handle this rebel?
6000 Zomato Delivery Partners Logout
As per reports coming in, 3000 delivery partners of Zomato from Mumbai and 3000 from Bengaluru have logged out from Zomato’s app, and have declared that they won’t work till their issues are resolved.
This is for the first time that so many delivery partners have rebelled against Zomato, at the same time, covering two major cities.
The bone of contention here is reduced income for the delivery partners.
Why Zomato Is Under Fire From Delivery Partners?
The reason is that Zomato has drastically reduced the incentives for delivery partners, and this is impacting their professional growth and income.
In Bengaluru, for instance, a Zomato delivery partner now earns Rs 30 per delivery, which has been reduced from Rs 40 earlier.
They used to make Rs 550 as incentive for completing 15 deliveries in a day, which has now been reduced to Rs 500, that too for 18 deliveries.
Besides, the distance criteria has been increased to 5 kms, from earlier 4.4 kms to be eligible for incentives.
Similarly, in Mumbai, the incentives have been reduced to Rs 25 from Rs 35, per delivery.
Earlier, they used to receive Rs 240 as incentive for completing 11 orders, which has now been increased to 14 orders.
Then there are issues related with accident insurance, and total number of deliveries being received, since there are more delivery partners now, compared to the past.
Zomato, in a statement, has indirectly attributed technology as the reason for faster deliveries, and hence, reduced commissions and incentives for the riders.
Zomato 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 have already reported how automation is helping Zomato to save time and money, and this is the reason they have terminated hundreds of employees.
In August, around 100 Zomato customer service employees were asked to leave, as their jobs are being done by bots now.
Again, in this month, Zomato fired 540 employees, due to rise in automation, and bot-enabled customer service.
Earlier, Zomato founder Deepinder Goyal had claimed that they have paid Rs 200 crore to their delivery partners, and added 10,000 new jobs.
We will keep you updated, as more details come in.