Thursday January 23, 2020
Home Lead Story Zomato Delive...

Zomato Delivery Executives in Bengaluru, Mumbai Protest as Company Claims Efficiency

According to Zomato executives, their incentives have been reduced while the company has increased the travel distance to make them eligible to earn bonus points

0
//
Zomato NRAI
Zomato in a smartphone device. Pixabay

As thousands of Zomato delivery executives in Bengaluru and Mumbai protested against the revised rate cards, the online food aggregator on Monday said that reduced average delivery time (less than 30 minutes) has enabled its delivery partners to perform more deliveries in the same amount of time.

In Bengaluru, the remuneration per delivery has been reduced to Rs 30 from Rs 40.

“Different metrics such as base pay, user satisfaction, delivery touchpoints and minimum guarantee etc. help us appreciate our delivery partners in accordance with their efforts,” a Zomato spokesperson said in a statement.

“Reduced average delivery time and increased system efficiency have enabled our delivery partners to perform more deliveries in the same amount of time,” the spokesperson added.

The food delivery platform on September 7 said that it has laid off 541 people — 10 per cent of the company’s strength — across customer, merchant and delivery partner support teams.

zomato, NRAI
Founded in 1982, the NRAI represents the interests of over 5 lakh restaurants. Pixabay

The reason behind the move is an improved Zomato platform with Artificial Intelligence (AI)-driven bots and automation in resolving customer queries that has led to an overall reduction in direct order-related support queries, the company had said.

“We regret the inconvenience caused to our users and are continuously working to resume our services in the affected areas,” said Zomato.

Also Read: More than 3.3 Million Women in US had Unwanted and Forced First Sexual Intercourse Experience

According to Zomato executives, their incentives have been reduced while the company has increased the travel distance to make them eligible to earn bonus points.

The company, which is at the loggerheads with the National Restaurant Association of India (NRAI) over deep discounts in its fine-dining Gold programme, claimed it has improved the speed of service resolution and now only 7.5 per cent of its orders need support (down from 15 per cent in March). (IANS)

Next Story

Zomato Acquires UberEats in India in an all-stock Deal

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date

0
Zomato NRAI
Zomato in a smartphone device. Pixabay

Zomato on Tuesday announced that it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.

“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Goyal, Founder and CEO, Zomato.

According to company sources, for the first three quarters of 2019, “our Uber Eats business comprised 3 per cent of our global Eats gross bookings, but was more than 25 per cent of our global Eats Segment Adjusted EBITDA losses”.

Uber started its food delivery service in India around mid-2017, but has not been able to scale up in the face of big players like Zomato and Swiggy.

It currently has nearly 26,000 restuarants listed on its platform from over 40 cities.

Zomato, Dining, Gold
Home-grown restaurant search and delivery platform Zomato on Friday introduced the “Infinity Dining” plan for its “Gold” subscribers that allows them to have unlimited buffet at partner restaurants. Pixabay

The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.

Uber CEO Dara Khosrowshahi said that the Uber Eats team in India has achieved an incredible amount over the last two years.

“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” said Khosrowshahi.

“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he added.

Also Read: World Economic Forum, TikTok Launch Diversity Campaign

On January 10, Zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.

The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event last December.

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date. (IANS)