FoodPanda India sacks 300 employees
Bengaluru, India | Red Newswire | Dec 30, 4:00 PM IST
The Indian unit of Rocket-internet backed online food ordering app FoodPanda has sacked 300 of its employees in face of rising competition from rivals including Zomato.
This mass layoff amounts to 15% of its total workforce in the local unit. Prior to layoff, FoodPanda India had 2,200 employees.
Saurabh Kochhar, CEO of FoodPanda India said, “While we continued to invest in processes and technology we also had to take some difficult decisions but we believe them to be necessary steps on our path to become sustainable and profitable within the targeted timeline.”
FoodPanda has laid off employees only in its Indian unit, which covers 200 cities across the country.
Kochhar said that the company might layoff more employees and added, “Re-organization of the business was done across every aspect, from technology to processes to customer service.”
According to a statement given by the company, it decided to layoff employees because it has achieved 98% automation rate in its order processing system. Kochhar said, “At present we do not have any such plans, as we continue to grow at a rapid speed and we believe the year 2016 is going be a great year for our business. We are focused on building scalable revenues and capabilities with a long-term goal.”
FoodPanda operates in over 30 countries worldwide and now is facing tough competition from India’s online food-ordering industry which is worth Rs. 95,000 crore as per the expert estimates.
FoodPanda comes under the Rocket Internet’s Global Online Takeaway Delivery Group and Goldman Sachs is one of its investor. Since its inception in 2012, the company has raised $310 million.
Source: ET Bureau