Zomato has implemented a new “Long Distance Service Charge” for food deliveries extending beyond a 4 km radius. This move aims to address the additional logistical costs associated with longer delivery distances.
📍 Details of the New Charges
- Deliveries Between 4–6 km: An additional fee of ₹15 applies if the order value exceeds ₹150.
- Deliveries Beyond 6 km: A fee ranging from ₹25 to ₹35 is charged, depending on the city, regardless of the order value.
These charges are in addition to existing delivery fees and platform charges.
🍽️ Impact on Restaurant Partners
Zomato has communicated to its restaurant partners that the total service fees, including this new distance charge, will not exceed 30%. However, some restaurant owners report that their total commission fees could rise to as much as 45%.Reddit
This has led to concerns among restaurant owners about the increasing cost burden. Some are considering collective action, such as temporarily going offline, to protest the new fees and revised agreements.
🛠️ Rationale Behind the Move
Zomato executives have indicated that the introduction of the long-distance service fee is part of a broader strategy to improve customer satisfaction. Data suggests that user experience deteriorates as delivery distance increases. By introducing this fee, Zomato aims to manage long-distance orders more effectively and ensure better service quality.
🔄 Revised Agreements and Policies
In addition to the new service charge, Zomato has approached certain restaurants with revised agreements. These include clauses to penalize restaurants for not maintaining price parity with other platforms and for encouraging customers to place orders outside of Zomato. The revised agreements also reflect the change of Zomato’s parent entity’s name to Eternal.F
📈 Broader Industry Context
This development follows recent changes in Zomato’s policies, such as the introduction of surge fees for Zomato Gold members during rainy weather. These moves are part of Zomato’s ongoing efforts to balance operational costs, partner relations, and customer satisfaction in the competitive food delivery industry.