Food delivery giant Zomato has implemented a new fee structure impacting restaurants. The change introduces a “long-distance service fee” for orders requiring delivery beyond a four-kilometer radius. This fee is levied on the restaurant, not the customer, and is designed to address the increased costs associated with longer delivery routes.

This move is likely a response to rising fuel prices and operational challenges inherent in servicing more distant customers. By directly charging restaurants for these longer deliveries, Zomato aims to mitigate potential losses and ensure the sustainability of its delivery network. The exact amount of the long-distance fee hasn’t been publicly disclosed, but it’s expected to vary based on distance and other factors.

The impact on restaurants remains to be seen. Some may absorb the cost, while others might adjust their pricing or delivery zones. This policy shift could affect smaller restaurants disproportionately, depending on their location and customer base. The long-term implications for both restaurants and Zomato will depend on how effectively the new fee structure balances the needs of all stakeholders. It will be interesting to observe the market’s reaction and whether this model becomes a standard practice across the food delivery industry. This new strategy is a significant development in the ever-evolving landscape of online food delivery.