Zomato riders will display number on bags for complaints: Deepinder Goyal
Around 41 shareholders registered as speakers at Zomato's AGM, and 10 raised questions to the company's management about profitability, Blinkit acquisition, and share prices.
On August 30, during 's first annual general meeting (AGM) after going public, the foodtech unicorn announced that delivery riders will have a number emblazoned on their bags that can be used to report if they speed on the roads.
While talking about rider safety, Founder and CEO Deepinder Goyal said, "We don’t incentivise riders to deliver an order quickly. We don’t tell them what the estimated delivery time is. If someone is speeding, it is of their own accord."
During his address to shareholders, Zomato Chairman Kaushik Dutta said that the company has decided to narrow its focus on three key areas: quick commerce, supplies to restaurants through 'Hyperpure,' and food delivery and ordering. He added that the move was part of a strategy to focus on areas that have the potential to become meaningfully large businesses in the years to come.
While talking about rider safety, he said that no compromises have been made or will be made. “It has always been a priority for us."
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About 41 shareholders registered as speakers at the AGM, and only 10 got the chance to raise questions to the company's management.
The majority of the questions concerned the company's path to profitability, the BlinkIt acquisition, and the company's share prices.
"Our current share prices are below the issue price. There are some factors beyond our control. But we are working to increase the top line and improve profitability," said Akshant Goyal, CFO, Zomato.
Zomato’s shares closed at Rs 57.95 per share on Tuesday. Its shares are currently trading at over 20% below its issue price of Rs 79 per share.
The foodtech major is targeting adjusted EBITDA breakeven for its overall business by Q4 of FY 2023 or Q2 of FY 2024.
The company reported its Q1 FY 2023 results on August 1, 2022. It reported losses of Rs 186 crore—down 48% from the year-ago period, and consolidated revenue of Rs 1,414 crore for the period. The company also reported adjusted EBITDA breakeven for its food delivery business.
Recently, Sequoia Capital India sold its partial stake in Zomato after the mandatory one-year lock-in period since its IPO ended in July 2022.
After this, Sequoia’s shareholding in the company will stand at 4.4%, down by 2.01% before the sale.
Edited by Kanishk Singh