As due to pandemic of COVID -19 it has severely impacted the online food websites like swiggy, zomato, food panda and so on, so as Swiggy said on Monday that it is cutting 1,100 jobs of the employees working in the firm as the low revenue rate of online food startups has badly impacted due to COVID -19 because people have become more cautious about ordering food online.
Swiggy’s co-founder Sriharsha Majety has said that this pandemic has badly impacted the food startups by which it has suffered a huge loss people are not ordering food online, restaurants are all closed due to the lockdown. The startup, which employed about 8,000 people late last year, is currently processing fewer than a million orders a day on its platform.
Not to suffer more loss now swiggy stated that it will be eliminating 1100 jobs of the employees from the firm to reduce the different costs of the firm and will work in the remote areas that have been badly impacted in these 3 months. It will also provide those being let go with medical and accident coverage until the end of the year, and counseling for mental, emotional, and financial stress throughout the same period.
It a very great decision taken by the management team of swiggy because it has been facing a lot many situations in these recent times of this pandemic. Majety wrote India is having a great knowledgeable person who has been working with us since past years and he stated that it leaves no doubts that this is not at all a reflection of anyone’s performance,”
In many newspapers, in late April it was stated that startups eliminating the jobs especially the facility of cloud kitchen (the doorstep delivery) amid due to the lockdown people were not ordering food and cautioned to order food online but swiggy did not state the numbers of eliminating. Many more other food startups eliminated the cloud kitchen facility similar move was been taken by zomato the 2 food delivery startup in India which said last week it will reduce its global workforce by 13%, or about 520 people.
Swiggy’s executive said that the last year 1000 cloud kitchens were been established for the restaurants’ partners in the country for which more than 1 million was been established but due to the novel coronavirus as they have already started the process of shutting down this facility to reduce their different costs of the firm. They are also operating at significantly lower levels on their staffing and physical infra than our earlier footprint, and will continue to optimize before they get more clarity on order volumes for food delivery,”
Swiggy and zomato have been a great completion to each other in the food delivery startup. They are currently in talks to raise the additional capital. They also have started to deliver the grocery items to the needy people to encourage the working of the government to face these crises.
Despite food delivery startups, many hospitality businesses have badly impacted as according to the instructions of the government of staying and home by which it has created a huge loss of the hospitality firms.
Ixigo, a 13-year-old travel and hotel booking service, said late April it was cutting the salary of its entire staff. MakeMyTrip, another travel and stay booking service, announced in the same month that it was also cutting the salary of its top management level across the company.