Food delivery platform Zomato on Thursday said it has increased the remuneration for its delivery partners on account of the recent increase in fuel prices.
Fuel prices have been on the rise for last few days, with a litre of petrol crossing Rs 100 mark in some states.
In a series of tweets, Zomato founder and CEO Deepinder Goyal said the company's delivery partners travel about 100-200 kilometres per day and the rise in fuel prices has led to an increase of Rs 600-800 per month on their fuel spend, which is about 3 per cent of their monthly income.
"Keeping the increasing cost of operations in mind, we have increased the pay structure for our delivery partners by 7-8 per cent going forward," he said.
The company has rolled out the increase in 40 cities and it will soon follow in other cities. Goyal said the new structure is designed to automatically adapt to any future changes in fuel prices.
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
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
The company is not yet passing the increase in costs to its customers.
Note - we are not yet passing on this cost to our customers. (5/5)- Deepinder Goyal (@deepigoyal) February 25, 2021
Earlier this week, Zomato had raised $250 million from five different investors as part of a primary fundraising round.
As per media reports, the company is planning to launch an IPO in the first-half of 2021 by valuing the company at $6-8 billion in the public market. The food delivery start-up has appointed Goldman Sachs, Kotak Mahindra Bank, Morgan Stanley and Credit Suisse to run its IPO process.