The food-delivery major, Zomato, has laid off 100 employees of its customer support executives at its Gurugram office in a cost-cutting drive. The reason behind the layoff is being stated as redundancy in the current workforce of the company. The representatives of the company said that the number of orders requiring support has come down significantly and this, in turn, created redundancy for 1.2% of the workforce. This is not the first time that Zomato has initiated a cost-cutting drive, in 2015 as well the company laid off as many as 300 of its employees.
Food-delivery firms are now increasingly deploying chatbots to solve user-related queries as it helps them cap the cost that they spend on customer support and after-sales services.
At present, Zomato is spending INR 4-5 on each order’s after-sales service.
Currently, Zomato is the biggest competitor in the food delivery marketplace clocking nearly 40 million orders per month as against Swiggy which sees around 30 million orders a month.
The cost-cutting did not come as a surprising move as over the past few months, many other players of the food tech industry have axed jobs citing operational efficiency as the reason for it. With the big players like Swiggy, UberEats that are already controlling a large part of the market and other new players coming up, the food tech majors are trying everything to expand their profits and capture the larger market share.
Currently, Zomato is the biggest competitor in the food delivery marketplace clocking nearly 40 million orders per month as against Swiggy which sees around 30 million orders a month. The online food delivery market is set to grow up to 16.2% and is expected to cross the mark of $17.02 billion by 2023, as revealed by a study.