Zomato, the largest FOOD delivery service in India, ceased operations in 225 Indian cities after reporting losses of Rs. 346.6 crore for the quarter that ended in December due to a slowdown in the food delivery industry. Zomato stated in its third-quarter financial earnings report that the meal delivery tech company’s losses have increased. The business declared that it had stopped operating in 225 smaller cities since its performance there was “not very encouraging.”
“The current slowdown in demand was unexpected, which is impacting the growth in food delivery profits. But despite that, we think we are in a good position to meet our profitability goal,” said the company in its Q3 report. In its financial earning report, the company noted that the food delivery application exited from “225 smaller cities in January, which contributed 0.3% of its gross order value in the December quarter”.
“Performance of these cities was not very encouraging in the past few quarters”: Zomato
Speaking about the decision, the company stated, “Performance of these cities was not very encouraging in the past few quarters, and we did not feel the payback period on our investments in these cities was acceptable.” It further talked about relaunching the Gold subscription to boost its profits. “We launched a brand-new membership program, Zomato Gold, in late January… We expect this program to drive loyalty and higher frequency of ordering going forward,” the company said, further claiming that more than 9 lakh members have taken the subscription.
Zomato CEO Deepinder Goyal has declared that the company is hiring 800 people to fill various positions and has posted numerous job openings on LinkedIn. However, one of the job postings stated that the applicant must “work 24 hours a day with no work-life balance,” which caused a reaction against the organization.
This is a 24-7 job, and the traditional employee mindset of “work-life balance” won’t work
“Hello everyone – we have about 800 positions open across these 5 roles at Zomato. If you happen to know someone really good for any of these roles, please tag them on this thread. To express interest in knowing more about any of these roles, please email me at deepinder@zomato.com – me and/or my team will be prompt in responding to you and closing the loop either way,” Goyal wrote.
In the job post, the Zomato CEO stated, “As the Chief of Staff to one of our CEOs (Zomato, Blinklt, Hyperpure), you will be nothing less than a force multiplier and a mini-CEO for the organization. You will drive large priorities across the organization to influence outcomes and maintain momentum. This is a 24-7 job, and the traditional employee mindset of “work-life balance” won’t work.”