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 in India. However, in a recent podcast, Zomato’s CEO Deepinder Goyal revealed that the company terminates nearly 5,000 gig workers every month, mainly due to fraud cases. This statement has sparked controversy and raised questions about the working conditions and treatment of gig workers in the industry.
According to Goyal, around 1.5-2 lakh workers leave voluntarily from Zomato’s 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 companies in the gig economy face similar challenges. However, the reason behind the termination of 5,000 workers per month is what’s causing concern.
Goyal attributed the terminations to fraud cases, which suggests that many workers are engaging in unethical practices, such as fake orders or collusion with restaurants. While this is a legitimate concern for any company, it also raises questions about the measures in place to prevent such fraud and support workers who may be struggling.
The statement came days after gig workers went on strike during New Year’s Eve over unfavorable working conditions. The strike highlighted the issues faced by gig workers, including low pay, long working hours, and lack of benefits. The fact that Zomato terminates thousands of workers every month due to fraud cases may indicate a deeper problem with the company’s business model and treatment of workers.
The gig economy is often praised for its flexibility and opportunity for workers to choose their own hours and projects. However, it also lacks the job security and benefits that come with traditional employment. Gig workers are often classified as independent contractors, which means they are not entitled to the same rights and protections as regular employees.
In the case of Zomato, the company’s reliance on gig workers has allowed it to scale quickly and efficiently. However, it also means that workers are shouldering the risks and uncertainties of the business. With no job security or benefits, gig workers are vulnerable to exploitation and may feel pressured to engage in unethical practices to make ends meet.
The issue of gig worker rights is not unique to Zomato or India. Companies like Uber and Lyft have faced similar challenges in the United States, with workers demanding better pay, benefits, and job security. As the gig economy continues to grow, it’s essential for companies to prioritize worker welfare and implement measures to prevent exploitation.
In conclusion, Zomato’s termination of nearly 5,000 gig workers per month is a concern that highlights the challenges faced by workers in the gig economy. While the company may be taking steps to prevent fraud and improve its business model, it’s essential to address the underlying issues that lead to worker dissatisfaction and exploitation.
As the demand for food delivery and other gig economy services continues to grow, companies like Zomato must prioritize worker welfare and implement measures to support and protect their workforce. This may include providing better pay, benefits, and job security, as well as implementing measures to prevent exploitation and fraud.
Ultimately, the future of the gig economy depends on the ability of companies to balance their business needs with the welfare of their workers. By prioritizing worker rights and well-being, companies like Zomato can build a more sustainable and equitable business model that benefits both the company and its workers.
News Source: https://www.newsbytesapp.com/news/business/zomato-terminates-5-000-employees-monthly-over-fraud/story
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