Zomato will no longer charge commission for takeaway service from partner restaurants

Last updated on February 21st, 2023 at 11:40 am

Zomato will no longer charge commission for takeaway service: On Wednesday, the food delivery company, Zomato decided that it would no longer charge commission for its takeaway service from its partner restaurants. The company took the decision to help restaurants ramp up their sales and recover faster from the ongoing financial crisis brought upon by the twin assault of the coronavirus pandemic and lockdown. The company said that its takeaway service has grown enormously with its volume reaching over 200% in the last few months.

The company founder, Deepinder Goyal, took to Twitter to share: “We are introducing takeaway/self-pickup services at a much larger scale than before.” “Also, making this service commission-free for our restaurant partners. To help the restaurant sector, we will also forego the payment gateway charges incurred on all such orders,” he added. ​​​​ ​​​

In the company’s blog post, Rahul Ganjoo, VP Products wrote, “For restaurants to be able to tap into this demand immediately, we are making our takeaway service available for free to our restaurant partners. We will not be charging any commission, and will also forego the payment gateway charges we incur on all takeaway orders.”

The company, which has lifted its takeaway charges for an indefinite tenure, said that the move would help restaurants regain their sales and get back on their feet. Zomato claimed that it has a tie-up with over 55,000 restaurants for takeaway across the country and deliver tens of thousands of such orders on weekly basis.

“We have delivered over 13 crore orders since the first lockdown started in March, and there have been zero reported cases of covid transmission through food or its packaging. While the above signs have been more than encouraging, we know that: a) this growth has not been uniform, and b) the overall foodservice industry is still far from full recovery. The sector will continue to need all the help to get back to pre-covid levels,” Ganjoo said.

Ganjoo added that once the takeaway charges will be wiped out customers “who are bored with home-cooked food will start consuming restaurant food with a safe and convenient takeaway option… For restaurants that already serve delivery orders, takeaway provides another avenue to access more customers, and further grow their business.”

Despite the current growth, food delivery industry also faced its share of slump during the lockdown, imposed as a preventive move against Covid-19. The food delivery apps included Zomato and Swiggy also had to take the tough call to lay off its employees due to dwindling finances. However, as soon as the lockdown was lifted, the industry took off soon after, hitting back its normal growth rate. Zomato assured its customers that its restaurant partners follow all the safety norms while preparing the food. The company also urged its users to wear masks and follow social distancing when they step out to pick their orders.

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