Zomato, during its quarter three financial earnings report, noted that the food delivery tech company’s losses have widened further. As a result, Zomato has ceased operations in 225 smaller cities, saying that the performance of these cities was ‘not very encouraging’. The company reported losses of Rs 346.6 crore for the quarter that ended in December due to reduction in food delivery business.
“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,” the company said in its Q3 report.
Zomato is one of the most-used food delivery apps in India and has recently re-launched its Gold subscription as an effort to boost profits. The company’s decision to pull out of 225 small cities comes at a time when it is planning to hire people for around 800 roles.
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Zomato will no longer be available in 225 small cities
The company, in its financial earnings report, noted that Zomato food delivery service made an exit from ‘225 smaller cities, which contributed 0.3% of its gross order value in the 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.”
However, it is unclear exactly which cities have been impacted by this move. The company also talked about the measures it is taking to boost its profits. It recently relaunched the Gold subscription in India. Talking about the same, it said, “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 also claimed that over 9 lakh members have joined the program.
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Hiring at Zomato
At a time when companies are laying off people to cut costs, Zomato CEO Deepinder Goyal offered a glimmer of hope to the working population after announcing that Zomato is looking to hire for around 800 roles. He posted several job vacancies on LinkedIn. However, in one of the posts, the requirement was to ‘work 24*7 with no work life balance. The post faced backlash from people on LinkedIn.
Zomato CEO Deepinder Goyal’s LinkedIn post
Zomato founder Deepinder Goyal posted ads for five positions on his LinkedIn account. The posts are – Chief of Staff to CEO, Generalist, Growth Manager, Product Owner, and Software Development Engineer.
“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 [email protected] – me and/or my team will be prompt in responding to you and closing the loop either way,” the entrepreneur wrote.
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.
