Zomato is Seeking a Hike in Commission it Receives on Food Deliveries

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Amid widening losses and a fall in profitability, Zomato has approached several  eatery chains seeking a rise of 2- 6 per cent in commissions, a report said. The eatery drivers have, still, refused to accept the hike.   Anurag Katriar, the author of Indigo Hospitality, which runs Indigo Deli and Neel  caffs, told ET,” colorful eatery chains have been approached in multiple metropolises including Mumbai, Delhi and Kolkata by Zomato to increase commissions.

It’s being done widely, so far, and assiduity associations will be agitating this with the aggregator”. The foodtech major has also reportedly told the eatery mates that it could reduce their visibility and delivery compass if they fail to cleave to its demand. Still,  numerous caffs have reportedly stuck to their  ordinance, egging a fresh conflict between Zomato and caffs.

The National Restaurant Association of India (NRAI) has said that it would take the issue of  adding commissions up with Zomato on behalf of its eatery  mates. The development follows after Zomato has been charging eatery mates a 18-25 commission per order for deliveries, depending on specific arrangements.  National Restaurant Association of India (NRAI) chairman Kabir Suri said that the matter will be settled with Zomato. “We’ll take this up with Zomato on behalf of our  Meatery mates,” the report quoted Suri as saying. The rearmost move to raise commission comes in the wake of Zomato reporting widening losses in the third quarter along with reduced deliveries as people flock to dine in after COVID restrictions were removed.

In apost-earnings letter to shareholders, Zomato CEO Deepinder Goyal had said the  retardation was a result of “ a many temporary factors ” and that “ we believe that the long-term opportunity remains large and  instigative ”. Zomato and its rival Swiggy have been at arms with  eatery mates since 2020, with the ultimate  professing that the aggregators offer deep abatements to boost client base, making their business unsustainable. Further, eatery  mates have contended that platforms charge uneven commissions.