Zomato Adds Distance Delivery Fee, Restaurants Upset Over Rising Costs

New Delhi: Zomato, a popular food delivery app, has started charging a new “long distance service fee” for orders delivered more than 4 km away. As per The Economic Times report, customers will now pay Rs 15 extra for deliveries between 4–6 km if their order is above Rs 150. For orders beyond 6 km, the new fee ranges between Rs 25 to Rs 35 depending on the city. This fee applies no matter how much the customer spends.

Zomato informed its restaurant partners that the total service fees, including the new charges, will not cross 30 per cent. However, many restaurants claim that commissions could go as high as 45 per cent. This has upset many restaurant owners.

A restaurant owner said they are tired of changing commission terms. Several restaurant owners are thinking about coming together and protesting by going offline for a day.

Zomato has also asked some restaurants to sign new agreements. This is because Zomato’s parent company is changing its name to “Eternal.”

The company says this fee is part of a larger plan. Zomato recently introduced a ratings system that checks how far food travels. They say customer satisfaction drops when food travels long distances.

Earlier, before the pandemic, free delivery was within 4–5 km. Later, this was extended to 15 km as many restaurants shut down.

The National Restaurants Association of India (NRAI) has raised concerns with Zomato. They plan to discuss the issue this week.

Zomato’s changes come at a time when food delivery growth is slowing down. Zomato has also recently shut down its 10-minute delivery services like Quick and Everyday.