Zomato is an Indian restaurant application and a food delivery startup which is founded by the Deepinder Goyal and Pankaj Chaddah in 2008 this application provides useful informations and menus of restaurants near us and delivers food to our doorstep. On 27th June some employees of Zomato in Kolkata protested against the company by burning their official t-shirts and as per the reports, many employees have already left that jobs. The employees protested because of Chinese investment in the firm.
This act comes in the backdrop of the killing of 20 Indian soldiers in a clash with chinese troops in eastern Ladakh galwan valley on June 15. During the protest at Behala in the southern West part of the city on Saturday some of the protestors claimed that this company has many seasonal Chinese investment so so if people uses this app the profit will straight go to Chinese investors which there at any cost won’t let that happen. The employees have also Earth’s people to stop ordering food via this company. One of the employee said that Chinese companies are making profits from here and on return attacking the army of our country they are trying to snatch our land we won’t let this happen. Another protestors said that we are ready to staff but we will not work for these kind of companies which are profitable to China.
As you all may not know that in 2018 Ant financial a part of Chinese nature Alibaba group had invested 210 million dollar in Zomato for a 14.7 % stake the food delivery major recently raised an additional 150 million dollar from Ant financial.
Zomato on May 16th slashed its team size by 13% or 520 people and implemented a temporary pay cut of up to 50% for the rest of its staff due to the virus outbreak hitting its core business.Zomato was very harsh with their employees they had decided that they will give 50% of their salary for up to 6 months or until they find a job which ever is earlier. They also included health insurance for employees who face a pay cut. The CEO of Zomato Mr Deepinder Goyal told his staff that he expects the number of restaurants to shrink by 20 to 40% over 6 to 12 months hence, they need to make sure that they preserve as much cash as possible to weather the storm if the business government gets worse or continues to be the same for the rest of the year. Zomato also fired many of their employees due to the covid-19 outbreak and the initial assumption that the company will not run in this lockdown.
After the protest there was no immediate reaction from the Zomato and whether the protestors were among those who were retrenched was not known.