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Zomato delivery executives up in arms against incentive cuts

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The other big factor that sparked off protests is a change in its incentive structure.
BENGALURU: Several hundred delivery executives of Zomato hit the streets of Bengaluru on Monday to protest against the online food ordering platform’s revised pay and incentive structure, which they said would hurt earnings amid a drop in the number of orders they fulfil.

Delivery executives told ET that Zomato had circulated a message on its revised incentive structure on Friday, which came into effect on Monday, sparking off the protests. Zomato did not confirm whether it had changed its incentive structure as claimed by its delivery agents. “Reduced average delivery time (less than 30 minutes) and increased system efficiency have enabled our delivery partners to perform more deliveries in the same amount of time,” the company said, adding it was working to resume services in areas affected by the protesting agents.

“I was earning Rs 15,000 in my previous job as a marketing executive and even though I have had to sacrifice a lot being a delivery executive, I was earning double the amount,” said Kavi Arasan, a delivery executive.

For delivery agents, the bone of contention is a revision in the way Zomato calculates payment for deliveries based on distance. For orders up to 5.5 kilometres, the company would pay a flat rate of Rs 30 and an additional Rs 10 for every km beyond that. While the company has not changed the base pay, it will now pay one rupee per additional 100 metres over the 5.5 km limit, the executives said.

The other big factor that sparked off protests is a change in its incentive structure. While the firm would earlier pay agents Rs 300, Rs 600 and Rs 800 for completing 11, 16 and 20 orders, respectively, in a day, delivery executives say the new structure is nowhere as attractive. They claim the company has reduced the payments to Rs 250 for 10 orders, Rs 400 for 15 orders, Rs 600 for 19 orders and Rs 850 for 23 orders, in a day.
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