Zomato Terminates Nearly 5,000 Gig Workers a Month: Deepinder Goyal
The gig economy has been a topic of discussion in recent years, with many companies relying on temporary or contract workers to fulfill their workforce needs. One such company is Zomato, a popular food delivery platform that has been in the news lately due to its treatment of gig workers. In a recent podcast, Zomato CEO Deepinder Goyal revealed that the company terminates nearly 5,000 gig workers every month, primarily due to fraud cases. This statement has sparked controversy and raised concerns about the working conditions and job security of gig workers in the industry.
According to Goyal, the main reason for terminating these workers is to prevent fraudulent activities that can harm the company’s reputation and affect its customers. He also mentioned that around 1.5-2 lakh workers leave voluntarily from its 7.5-lakh workforce every month. To replace those exiting, the company onboards a similar number of new workers monthly. This high turnover rate is not unique to Zomato, as many gig economy companies face similar challenges in retaining their workforce.
Goyal’s statement came days after gig workers went on strike during New Year’s Eve over unfavourable working conditions. The strike was a response to the company’s decision to reduce the payment per delivery, which affected the workers’ earnings. The strike highlighted the struggles faced by gig workers, who often lack job security, benefits, and fair compensation. The incident also sparked a debate about the rights and protections of gig workers, who are often classified as independent contractors rather than employees.
The termination of 5,000 gig workers per month is a significant number, and it raises questions about the company’s hiring and retention strategies. While Goyal attributed the terminations to fraud cases, it is essential to consider the broader context of the gig economy and the challenges faced by workers in this sector. Many gig workers rely on platforms like Zomato to make a living, and the lack of job security and benefits can make it difficult for them to plan for the future.
The gig economy has been criticized for its treatment of workers, who are often classified as independent contractors rather than employees. This classification means that workers are not entitled to the same benefits and protections as traditional employees, such as minimum wage, overtime pay, and workers’ compensation. The lack of regulation and oversight in the gig economy has led to exploitation of workers, who may be forced to work long hours for low pay and without access to basic benefits.
In recent years, there have been efforts to regulate the gig economy and provide better protections for workers. Some countries have introduced laws to classify gig workers as employees, rather than independent contractors, which would entitle them to benefits and protections. However, the implementation of these laws has been slow, and many gig workers continue to face challenges in their daily work.
Zomato’s decision to terminate 5,000 gig workers per month is a symptom of a broader problem in the gig economy. The company’s reliance on temporary and contract workers has created a culture of precarity, where workers are easily replaceable and lack job security. This culture can lead to exploitation and mistreatment of workers, who may be forced to work in unfavourable conditions without access to benefits or protections.
In conclusion, the termination of 5,000 gig workers per month by Zomato is a concerning trend that highlights the challenges faced by workers in the gig economy. The company’s reliance on temporary and contract workers has created a culture of precarity, where workers are easily replaceable and lack job security. To address these challenges, it is essential to regulate the gig economy and provide better protections for workers. This can include classifying gig workers as employees, rather than independent contractors, and providing access to benefits and protections.
As the gig economy continues to grow, it is crucial to prioritize the rights and protections of workers in this sector. Companies like Zomato must take responsibility for their treatment of workers and work towards creating a more sustainable and equitable work environment. By doing so, we can create a gig economy that works for everyone, not just the companies that profit from it.
News Source: https://www.newsbytesapp.com/news/business/zomato-terminates-5-000-employees-monthly-over-fraud/story
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