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Zomato increases pay for delivery partners to account for increase in fuel prices

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.

twitter-logoBusinessToday.In | February 25, 2021 | Updated 22:31 IST
Zomato increases pay for delivery partners to account for increase in fuel prices
Zomato has rolled out the increase in 40 cities and will soon follow in other cities.

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.

Also read: Zomato raises $250 million from 5 different investors

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.

The company is not yet passing the increase in costs to its customers.

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.

Also read: Ahead of IPO, Zomato set to close $500 million funding

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