Zomato CEO Reveals Monthly Termination of 5,000 Gig Workers: Fraud and Voluntary Exits
Food delivery platform Zomato terminates nearly 5,000 gig workers a month due to fraud cases, while around 150,000 to 200,000 workers leave the platform voluntarily, according to Deepinder Goyal, founder and CEO of parent firm Eternal.
In a video podcast with YouTuber Raj Shamani, Goyal said that those who leave voluntarily consider gig work as largely transient. This insight comes amid growing concerns about the working conditions and job security of gig workers in the rapidly expanding food delivery and quick commerce sectors.
Goyal’s statement follows a recent strike by gig workers operating on platforms like Zomato during New Year’s Eve. The workers cited unfavorable working conditions, including a lack of social security and inadequate wages. In response, Goyal highlighted the company’s efforts to provide insurance for gig workers in case of accidents and even job offers to families. He also noted that a person working on the platform for 8-10 hours a day, six days a week, can earn upwards of ₹25,000.
However, the challenges extend beyond just the workers. Goyal mentioned that customers also commit frauds in some cases. To address this, Zomato has implemented a ‘Karma’ system, which internally rates both customers and gig workers. When complaints arise, the company evaluates the credibility of both parties using this rating metric to provide a fair resolution. Despite these measures, Goyal acknowledged that the company often bears the financial burden, with the company taking the hit 50-70 percent of the time.
On the topic of raising capital, Goyal emphasized that the company never made specific predictions to investors. Instead, they focused on discussing the market size and the opportunities available. This approach has helped Zomato maintain a strategic and forward-looking perspective in a highly competitive market.
The gig economy, while providing flexible job opportunities, continues to face scrutiny over issues such as worker rights and fair compensation. Zomato’s efforts to balance these challenges while maintaining its growth trajectory will be closely watched by stakeholders and the broader community.
