Zomato’s newly introduced long-distance service fee has sparked concern among restaurants, prompting the National Restaurant Association of India (NRAI) to discuss the matter with the foodtech company this month.
As per Inc42 reports, the restaurant industry body already held a round of discussions with Eternal CEO Deepinder Goyal. However, at that time, they did not come up with the solution. The NRAI will now hold a meeting with Goyal to find a solution.
In May, Zomato increased the cost burden on restaurants for fulfilling orders, particularly those placed from nearby locations, as it pushes to boost profitability on every order. As per the document, for orders valued above ?150, restaurants will be charged an extra ?20 if the delivery address is 4–6 km away from their outlet or cloud kitchen.
This fee doubles to ?40 for deliveries exceeding 6 km. For lower-value orders—those priced under ?150—no additional fee will apply as long as the delivery is within a 6 km radius. If these small orders are delivered beyond 6 kilometres, Zomato will collect Rs 40 per order from the restaurant.
However, the total amount payable to Zomato, including all components, will be capped at 30% of the order value in commission. It means that no restaurant partner will be asked to pay more than 30% of the order value, it added.