New Delhi: As a mark of protest against restaurant aggregator Zomato’s revised pay and incentive structure, delivery executives in Mumbai and Bengaluru went on a mass strike on Monday. The new pay structure, the executives allege, would hurt their earnings amid a drop in the number of orders they fulfil.
According to reports, the company, which earlier used to pay its delivery boy Rs 40 per delivery, has slashed the remuneration by Rs 10 in the capital cities of Maharashtra and Karnataka, respectively. Zomato had circulated a message on its revised pay structure on Friday, with the same coming into effect from Monday.
However, the company, which was recently in news for taking a stand against a customer who cancelled his order and asked for a refund only because he was assigned a Muslim delivery executive, is yet to officially confirm that it has indeed changed its pay structure as alleged by its delivery agents.
One bone of contention between the online food ordering platform and the delivery executives is how it calculates payments of deliveries based on distance. For orders upto 5.5 kms, it would pay a flat rate of Rs 30 and an additional Rs 10 for every km beyond that. However now, the agents allege, they will be paid just one rupee per additional 100 metres within the 5.5 km limit.
Another bone of contention is the new incentive structure, which, the executives say, is not as attractive as the old one. While under the previous structure, the company would pay Rs 300, Rs 600 and Rs 800 for completing 11, 16 and 20 orders a day, respectively, as per the revised structure, the payment has been reduced to Rs 250 for 10 orders, Rs 400 for 15 orders, Rs 600 for 19, Rs 800 for 23 orders a day, respectively.
Zomato, which recently sacked over 500 employees, was found in 2008 by Deepinder Goyal and Pankaj Chaddah. It is currently available in 24 countries and provides information, menus and user-reviews of restaurants.