Author Topic: Explaining relationship between delivery partners and Zomato  (Read 1559 times)


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Explaining relationship between delivery partners and Zomato
« on: September 08, 2021, 08:18:52 PM »
Food delivery is highly complex as food is a perishable commodity, and requires careful handling while maintaining high levels of hygiene and real-time on-demand service. Zomato has invested in building technological and operational capabilities for real-time, demand  forecasting, fleet optimization, estimation of order preparation and food delivery time, and intelligent dispatch technology, enabling optimized matching of orders and delivery partners. Zomato's delivery network accounted for fulfillment of ~95% of orders received on the platform and the rest were delivered by the restaurant partners themselves in FY2021.

Nearly 95% of Zomato’s headcount is hired directly by it (via its small regional offices where riders can walk-in and get employed) and the remainder belongs to hyperlocal delivery companies such as Shadowfax. Zomato sources agents on its own as it doesn’t find the scale it needs in most cities with other logistics companies.

Per the company, it also maintains medical insurance for hospitalization and accident insurance for delivery partners.

How Zomato Does Earnings Management of Delivery Boys ?
Delivery staff is paid on a per order basis (pay is completely variable for delivery agents), and Zomato ultimately tries to control the overall money a delivery agent makes on an hourly basis such that benefits of higher productivity will be retained by the company.

Delivery cost can vary substantially between Tier-I and Tier-II cities as wage expectations of an agent can be very different. For instance, in a Tier 1 city, if a delivery agent devotes 8 hours a day to Zomato for 24 days a month, they would want to make Rs19,000.

The Social Security Code of India
the concept of workers outside traditional employer-employee work-arrangements (including in online and digital platforms such as Zomato), such as "gig workers" and "platform workers" and provides for the mandatory registration of such workers in order to enable them to avail benefits of life and disability cover, health and maternity benefits, old age protection etc.