Zomato demands increase in commission on delivery of food-items


Business News Desk, Food delivery company Zomato has demanded an increase in commission from restaurants. For this, Zomato has started talks with restaurants. But resentment is being seen in the restaurant industry regarding this move of Zomato. The restaurant industry has refused to accept this demand of Zomato. According to the report of Economic Times, Zomato has demanded an increase in commission from 2 to 6 percent.

Zomato has taken this step after increasing losses in the third quarter of the financial year 2022-23. There has also been a decrease in the total number of food deliveries in the third quarter. Now after the end of Corona, people are preferring to go to restaurants. Restaurants have turned down Zomato’s demand to increase their commission. Kabir Suri, President of the National Restaurant Association of India (NRAI), said that he will talk to Zomato about this. However, Zomato has started renegotiating terms and conditions with many restaurants regarding commission. The company’s focus is on increasing its profit in any situation. Zomato charges 18 to 25 percent per order commission for the last two years.

Zomato has seen an increase in losses in the December quarter behind the demand for commission hike. The company incurred a loss of Rs 347 crore in the December quarter, which is Rs 63.2 crore more than the same quarter last year. Although the company’s revenue has increased by 75 percent to Rs 1948 crore. Recently Zomato has launched Home Style Meal Service Everyday keeping in mind the students and office goers. These miles will be delivered in just 10 to 15 minutes and the price has been fixed at Rs 89 per mile excluding the delivery cost. This service has been started as a pilot project in Gurugram.

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