Zomato Fires 541 Employees Due To Automation; Pays Rs 200 Crore/Mo To Riders!
ZIndia’s leading food discovery and food ordering app Zomato has decided to terminate more than 500 employees, since their jobs are no longer required due to automation.
Meanwhile, they have stated that more than Rs 200 crore per month are paid to their riders or delivery partners, and they are generating 5 lakh jobs directly or indirectly.
Interesting developments, since Zomato’s Gold membership is under fire from restaurant owners due to deep discounting, and a lot of drama is already happening in this regard.
Checkout the entire news!
Rising Automation In Zomato: 541 Employees Fired
Zomato has confirmed that 10% of their workforce, which is 541 employees, will be terminated. And the reason is automation.
These employees who will be asked to leave are from the customer service department, and as per the company sources, automation has made their job redundant.
The company is offering them two months severance pay and added medical benefits as per the company policy.
In a statement, Zomato said, “While this has been a painful decision, to make the transition smoother, we have extended between two-month months severance pay (based on tenure), family health insurance cover (till the end of January 2020) and career fair opportunities with companies,”
The company has confirmed that automation related to customer support for orders placed is rising, and there is no need for actual customer service representatives in the company.
The statement said, “Over the last few months, we have seen our technology products and platforms evolve and improve significantly. This has led to an overall reduction in direct order-related support queries,”
Zomato Pays Rs 200 Crore Per Month To Delivery Partners
Meanwhile, in a related news, Zomato has stated that they are now paying Rs 200 crore per month to their riders, also called delivery partners who actual delivery the ordered food.
As of now, there are 2.3 lakh delivery partners across India, which was just 230,000 last September.
The company also stated that the company serves 25 million customers every month, and creates 5 lakh jobs directly or indirectly.
We have already reported that Zomato will soon launch Gold program for delivery of food, and this can make things really interesting for the food delivery sector.
We will keep you updated, as more details come in.