Food tech giant Zomato has noted that its Financial earnings has just widened and the company has also announced that it has ceased operations in 225 cities as performance of these cities is not encouraging. The company has reported a loss of Rs 346.6 crore for the quarter that ended in December due to the reduction in food delivery business.
Zomato ceases operations in 225 cities
Company stated in its Q3 performance,
“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,”
Zomato is India’s most used and popular food delivery app and recently re launched its Gold subscription plan to boost its profitability in the country. Its decision to pull out of 225 small cities comes at a time when it is planning to hire 800 people for around 800 roles.
It further justified its decision to exit 225 smaller cities , because they contributed just 0.3% to its gross order value in December quarter. Talking about the move the company said,
“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.”
The precise cities affected by this change are unknown, though. The business also discussed the steps it is taking to increase profitability. The Gold subscription has just relaunched in India. Speaking of the same, it stated:
“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.”
More than 9 lakh members, according to the company, have signed up for the programme.
Hiring’s at Zomato
Zomato CEO Deepinder Goyal brought some ray of hope to the working population by stating that Zomato is hiring for over 800 positions at a time when businesses are cutting staff to reduce expenses. On LinkedIn, he listed many job openings. On the other hand, one of the positions required 24-hour work shifts with no work-life balance. People who read the post on LinkedIn criticised it.
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Zomato CEO Deepinder Goyal’s post
Deepinder Goyal, the founder of Zomato, advertised five openings on his LinkedIn profile. Chief of Staff to the CEO, Generalist, Growth Manager, Product Owner, and Software Development Engineer are the positions.
Entrepreneur wrote,
“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,”
In the post that mentioned ‘no work life balance’ as a requirement, the Zomato founder wrote, “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,” Goyal noted in the post. “This is a 24-7 job, and the traditional employee mindset of “work life balance” won’t work.
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