Food delivery unicorn Zomato’s IPO may bear good news for India’s jobseekers.
After going public, “the company is likely to hire more and script a new chapter in its business expansion plans to remain competitive in the Indian online food delivery market,” Ajay Kumar Thalluri, business fundamentals analyst at analytics firm GlobalData, said in a July 14 press note.
That’s what US-based food delivery firm DoorDash did after it went public in December 2020. The company’s job postings increased to 283 in March 2021, from 139 jobs in December 2020, according to GlobalData’s job analytics database.
Not just the number but the make-up of Zomato’s staff will likely evolve. Currently, almost half of Zomato’s 3,600 employees held sales-related positions. Going forward, the company will look to hire legal and accounting staff to improve the effectiveness of disclosure controls and procedures as a listed company, said Thalluri. With access to more capital, it can also strengthen its product and technology team.”
Owing to the pandemic, Zomato laid off 520 employees—13% of its workforce—last May. Earlier this year, it started hiring via referrals again. Akriti Chopra, the company’s chief people officer, had then said most of its contemporary hiring is for the tech and product teams.
On the delivery front, the company is reportedly planning to improve the current dismal share of females in its fleet—0.5%—to at least 10% by the end of the year. The company is tweaking policies and features to attract and retain women, including access to safety-related tools like SOS buttons and contactless deliveries. Self-defense training will also be part of the onboarding process.
Zomato needs to step up spends on recruitment as competition in the food-delivery space heats up.
Zomato’s closest rival Swiggy, which is still private and is preparing to close a billion-dollar fundraise, has been on a hiring spree. The Bengaluru-based firm is reportedly recruiting for CXO and leadership roles. It also has hundreds of positions open at various levels.
Amazon, a recent entrant in India’s food-tech scene, is already hiring for its upcoming food-delivery business at its Bengaluru office in India. Vacancies for new initiatives leader and category management associate at Amazon Food are currently open on jobs portals LinkedIn and Indeed. And it’s a threat for one big reason: It charges restaurants just 10% commission, nearly half of what Zomato and Swiggy charge. Plus, the millions of existing Amazon Prime subscribers don’t have to pay any additional delivery fees on their food-delivery order.
Seeing the moves its competitors are making, Zomato “may soon open hiring beyond its tried and tested talent sourcing methods,” Thalluri predicted.