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Online food ordering start-up Foodpanda India has laid off close to 500 employees, according to two people aware of the development.
The layoffs ordered on Monday covered all business segments—sales, marketing, vendor service, customer delight, business intelligence, automation, on-boarding and an in-house call centre in Gurgaon.
Starting in January, Foodpanda will also stop food delivery in six cities, including Kolkata, Chennai, Nagpur and Coimbatore, the two people said on condition of anonymity. Mint could not ascertain the other two locations.
Foodpanda delivers 20% of its total orders on its own. The rest is outsourced to vendors, who pick up and deliver food. Or the restaurants listed on the site do it themselves.
Foodpanda is one of the world’s largest online food ordering marketplaces, present across India, Brazil, Russia, South-east Asia and Eastern Europe. It has raised almost $310 million since its launch in March 2012 from the Samwer Brothers of Rocket Internet and Goldman Sachs, a global bank.
“As a result of the many technological innovations, we have achieved over 98% automation in order processing. This resulted in lesser manual interventions, thereby leading to surplus manpower, which was not benefitting the business or our people’s careers,” Saurabh Kochhar, chief executive officer (CEO) of Foodpanda India, said in an emailed reply. “Therefore, unfortunately, we had to let go of around 250-300 people from our total manforce.”
Foodpanda fires over 500 employees, will stop own delivery in six cities - Livemint
The layoffs ordered on Monday covered all business segments—sales, marketing, vendor service, customer delight, business intelligence, automation, on-boarding and an in-house call centre in Gurgaon.
Starting in January, Foodpanda will also stop food delivery in six cities, including Kolkata, Chennai, Nagpur and Coimbatore, the two people said on condition of anonymity. Mint could not ascertain the other two locations.
Foodpanda delivers 20% of its total orders on its own. The rest is outsourced to vendors, who pick up and deliver food. Or the restaurants listed on the site do it themselves.
Foodpanda is one of the world’s largest online food ordering marketplaces, present across India, Brazil, Russia, South-east Asia and Eastern Europe. It has raised almost $310 million since its launch in March 2012 from the Samwer Brothers of Rocket Internet and Goldman Sachs, a global bank.
“As a result of the many technological innovations, we have achieved over 98% automation in order processing. This resulted in lesser manual interventions, thereby leading to surplus manpower, which was not benefitting the business or our people’s careers,” Saurabh Kochhar, chief executive officer (CEO) of Foodpanda India, said in an emailed reply. “Therefore, unfortunately, we had to let go of around 250-300 people from our total manforce.”
Foodpanda fires over 500 employees, will stop own delivery in six cities - Livemint
