Monday September 23, 2019
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Zomato Lays off 541 People, Blames it on Automation

However, Zomato is hellbent on carrying on with its plans to make its Gold programme now available for delivery

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zomato, NRAI
Founded in 1982, the NRAI represents the interests of over 5 lakh restaurants. Pixabay

Food delivery platform Zomato on Saturday said that it has laid off 541 people — 10 per cent of the company’s strength — across customer, merchant and delivery partner support teams.

The reason behind the move is an improved Zomato platform with Artificial Intelligence (AI)-driven bots and automation in resolving customer queries that has led to an overall reduction in direct order-related support queries, the company said in a statement.

“While this has been a painful decision, to make the transition smoother, we have extended between two-month months severance pay (based on tenure), family health insurance cover (till the end of January 2020) and career fair opportunities with companies,” said Zomato.

The company, which is at the loggerheads with the National Restaurant Association of India (NRAI) over deep discounts in its fine-dining Gold programme, claimed it has improved the speed of service resolution and now only 7.5 per cent of its orders need support (down from 15 per cent in March).

“Over the last few months, we have seen our technology products and platforms evolve and improve significantly. This has led to an overall reduction in direct order-related support queries,” said the company.

Zomato NRAI
Zomato in a smartphone device. Pixabay

Zomato said it hired over 1,200 people across functions (excluding its last-mile delivery fleet) and another over 400 off-rolls positions, and is currently hiring in technology, product and data sciences teams.

The company is planning to introduce its Gold programme across multiple cities on its delivery platform.

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The NRAI said on August 30 that there is an in-principle agreement between the association and the two major online delivery platforms, Zomato and Swiggy, to resolve the issues of the industry including deep discounts.

However, Zomato is hellbent on carrying on with its plans to make its Gold programme now available for delivery. (IANS)

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Restaurants Lose Customers After Decline in Zomato Gold Due to Logout

Zomato Gold has been a game changer in terms of driving the dine-out habits of customers, a new report has claimed, saying there has been a 20 per cent decline in bill volumes

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Restaurants, Zomato, Zomato gold, decline, bills, orders
Zomato has announced to take its Gold programme where existing and new Zomato Gold members will be able to use Gold for home delivery orders. Pixabay

Zomato Gold has been a game changer in terms of driving the dine-out habits of customers, a new report has claimed, saying there has been a 20 per cent decline in bill volumes for partners after they logged out of Zomato Gold programme.

Gold partners have witnessed growth over 35 per cent growth in bill volumes after partnering with Zomato Gold and weekday growth has been marginally better than weekend growth, said the report from Bengaluru-based research firm RedSeer.

“Ninety per cent of Zomato Gold Members try out new restaurants just because of the programme. Dine-out frequency for Gold members has increased from 2.8 to 3.3 times/month after subscribing to Gold membership and is 50 per cent higher than that of non-Gold members,” the findings showed.

Zomato on Saturday announced to take its Gold programme to delivery platform, where existing and new Zomato Gold members will be able to use Gold for home delivery orders. The programme is currently available in 16 cities.

Zomato Gold was till date available only on eating out at fine-dine restaurants.

According to the new report, 95 per cent of Zomato Gold Members order more number of dishes/drinks because of Gold discounts.

“Pre-discount average bill value for Gold members is over 11 per cent higher than non-members,” the redseer report mentioned.

Sixty per cent of the Gold partners agree that there has been an increase in new customers coming in because of Zomato Gold.

Fifty-five per cent of the Gold partners have witnessed an increase in visit frequency of Gold customers, the report added.

Restaurants, Zomato, Zomato gold, decline, bills, orders
The National Restaurant Association of India (NRAI) on Saturday slammed Zomato for extending its “Gold” programme on its delivery platform, saying it is a desperate attempt. Pixabay

Students and young professionals with low-income tend to have lower bill value are also utilizing the Gold programme to its maximum.

“Onboarding members via sources like premium credit cards, video subscription platforms, HNI (high networth individuals) targeted platforms like Cred etc. will further enhance the presence of high-spending individuals on Gold platform,” the report added.

Meanwhile, the National Restaurant Association of India (NRAI) has slammed Zomato for extending its “Gold” programme on its delivery platform, saying it is a desperate attempt by the online food aggregator to shore up the sinking fortunes of its flagship Gold programme.

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NRAI also said that it continues to remain firm in its belief that Zomato Gold in its current form is an unacceptable proposition.

According to Zomato, the Gold programme drives 25-30 per cent business for its restaurant partners and more and more Gold users (90 per cent) are exploring new restaurants because of the programme.

Gold on delivery will offer the second-highest priced item on the order for free, except for combos, MRP items and special dishes. (IANS)