After new payment structure, over 5,000 delivery partners move out from Zomato

The #Logout campaign against Zomato, triggered by restaurants association NRAI and supported by hotels association FHRAI, is now becoming more intense as hundreds of delivery partners started to protest against the company in Bengaluru. 

The matter was highlighted by a tech journalist on Twitter, where a rally of Zomato delivery partners, raising slogans against the company, can be seen.

A thread on microblogging site claimed that over 3,000 such partners have logged out from Zomato app in the past three days. Not only in Bengaluru, but Mumbai has witnessed a similar condition where 2,000-3,000 delivery boys have reportedly said goodbye to the company.

This could be another fallout for Zomato, which has been receiving flak from restaurant partners over predatory pricing, delivery partners as well as associations supporting them.

 Entrackr's sources said that multiple issues including incentives, daily earnings and cut in other perks are probable reasons behind the outcry.

Responding to Entrackr's queries, a Zomato spokesperson 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."

All foodtech companies, including Zomato, had held multiple meeting with NRAI to sort out the issue. Despite several efforts by Zomato such as restructuring its Gold subscription, pulling back Infinity Dining program, the company has not been able to contain the protests.

Even the company's last meeting held on September 13 went in vain as NRAI couldn't agree on terms and conditions applied on Zomato Gold either in dine-in or delivery segment.

During the #Logout campaign led by NRAI, over 1,200 restaurants across India pulled out of Zomato app, as deep discounts hurt their businesses.

Talking about the ongoing matter, newly appointed NRAI president Anurag Katriar said that the association has successfully concluded talks with Dineout, Nearbuy and Magicpin and they are back in business and out of the purview of #Logout.