Zomato unveils new credit incentive policy for delivery boys
The policy comes amid the question of whether the delivery partners have benefited from the hugely successful IPO of Zomato.
Months after revising the wages of delivery boys, Zomato has unveiled a new incentive for them. The food delivery and restaurant discovery platform will allow delivery partners to keep the cash collected from cash on delivery orders for their own spends, only to be adjusted against their weekly payouts, according to a report in the Economic Times.
Bumper IPO
The policy comes amid the question of whether the delivery partners have benefited from the hugely successful IPO of Zomato. Earlier this month, it had raised nearly Rs 10,000 crore from the market and the stock was listed at over 50% premium to its issue price of Rs 76 a share.
Earlier in February this year, the company had revised upward the wages of delivery boys in the wake of a hike in petrol prices.
Zomato claims it has over 1.5 lakh delivery partners in its fleet. It also has plans to strengthen that number.
Another media report quoting industry experts said while riders will benefit from the incentives, the company stands to gain. “Riders benefit, but only to an extent, as they are at the end of the day only getting what is due to them, maybe a few days sooner,” Harminder Sahni, MD of consulting firm Wazir Advisors, told.
“The benefits for the company are that they don’t have to handle cash at their end. So, a lot of processes of collecting from riders, accounting, and then depositing with a bank goes away, which will save a lot of resources for the company as well,” he added.
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