Zomato's Parent Eternal To Make Each Order More Profitable
Eternal, Zomato's parent looks to make each order more profitable, by making the service orders costlier for restaurants, especially the ones that come from a few kilometers away. Zomato is now demanding restaurants to pay the platform an additional ‘long distance fee’ on orders that are delivered beyond four kilometers.
As per reports, restaurants will have to pay Zomato an additional Rs.20 per order in long distance fee if the delivery location is 4-6 kilometers away from the restaurant or cloud kitchen. If the order value is above Rs.150. If the delivery location is more than six kilometres away, the fee is doubled. For smaller orders that fall in the Rs.0-150 price bracket, restaurants need not pay any additional charges if the food is delivered within six kilometers. However, if these small orders are delivered beyond 6 kilometers, Zomato will collect Rupees 40 per order from the restaurant.
Eternal said in its communication, “Our endeavor is that each order should be profitable for you, and us. No such fee was in place earlier.”
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As per reports that spoke with four restaurant owners said, Eternal has begun making these proposals only in the past few days. The additional fee, which they said will deter them from servicing orders that come from far away, will be rolled out soon. To be sure, the additional long distance fee will differ slightly for different restaurant partners, depending on their arrangements with Eternal/Zomato.
However, the total amount payable to Zomato, including the latest fee and other components, will be capped at 30 percent of the order value which essentially means no restaurant partner will pay more than 30 percent of the order value in commissions