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 carry out their operations. One such company is Zomato, a popular food delivery platform that has been in the news lately for 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, mainly due to fraud cases. This statement has raised concerns about the working conditions and job security of gig workers in the company.
According to Goyal, around 1.5-2 lakh workers leave Zomato voluntarily every month from its 7.5-lakh workforce. However, the company onboards a similar number of new workers monthly to replace those exiting. This high turnover rate has raised questions about the company’s human resource management and its ability to retain workers. The fact that Zomato has to terminate thousands of workers every month due to fraud cases also suggests that the company may need to re-evaluate its hiring and training processes.
Goyal’s statement came days after gig workers went on strike during New Year’s Eve over unfavourable working conditions. The strike, which was reported in several cities across India, highlighted the struggles faced by gig workers in the food delivery industry. Workers complained about low wages, long working hours, and lack of benefits, among other issues. The strike was seen as a rare instance of gig workers coming together to demand better working conditions and more respect from their employers.
The issue of gig workers’ rights has been a contentious one in recent years. With the rise of the gig economy, many workers have found themselves without the same benefits and protections as traditional employees. Gig workers are often classified as independent contractors, which means they are not entitled to minimum wage, overtime pay, or other benefits. This has led to concerns about exploitation and mistreatment of gig workers.
Zomato’s decision to terminate thousands of gig workers every month has also raised concerns about the company’s commitment to its workers. While Goyal has stated that the company is committed to providing opportunities to those who are willing to work hard, the high turnover rate suggests that the company may need to do more to support its workers. This could include providing better training, more competitive wages, and greater benefits.
In addition to the issues faced by gig workers, Zomato’s business model has also been criticized for its impact on the restaurant industry. Many restaurants have complained about the high commission rates charged by Zomato and other food delivery platforms, which can eat into their profit margins. This has led to concerns about the sustainability of the business model and the impact it may have on the restaurant industry as a whole.
Despite these challenges, Zomato remains one of the largest food delivery platforms in India, with a valuation of over $5 billion. The company has expanded its services to include grocery delivery and dining out, and has also invested in several other startups. However, the company’s treatment of gig workers and its impact on the restaurant industry will continue to be a topic of discussion in the coming months.
In conclusion, Zomato’s decision to terminate nearly 5,000 gig workers every month is a concerning trend that highlights the struggles faced by workers in the gig economy. The company’s high turnover rate and reliance on temporary workers also raises questions about its commitment to its workers and its ability to provide stable employment opportunities. As the gig economy continues to grow, it is essential that companies like Zomato prioritize the well-being and dignity of their workers, and work towards creating a more sustainable and equitable business model.
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