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Zomato CEO: Report speeding delivery riders on roads using number on their bag

Zomato delivery riders will have a number branded on their bags that can be used to report if they speed on highways.

Updated : Aug 31, 2022, 02:17 PM IST | Edited by : Maitry Kothari

Zomato CEO: Report speeding delivery riders on roads using number on their bag

Zomato delivery riders will have a number branded on their bags that can be used to report if they speed on highways, the company's CEO announced during its annual general meeting (AGM) on August 30.

“We do not incentivise riders to deliver an order quickly. We don’t even tell them what the estimated delivery time is. If someone is speeding, it is of their own accord,” said Zomato founder and CEO Deepinder Goyal.

Goyal took a backseat during the company's first AGM following its IPO, speaking only briefly on rider safety and letting the company's chief financial officer (CFO), Akshant Goyal, handle the rest of the questions.

Only about 10 of the 41 shareholders who registered as speakers for the AGM really had the chance to question the company's management. The majority of the inquiries concerned Zomato's route to profitability, the sharp decline in share prices, and the purchase of Blinkit, a business that specialises in rapid commerce.

One of the shareholders asked, “Please sochiye share price kaise upar jayega. Koi aisi news laiye ki share price bahut upar jaye.." (Please think about how the share prices can be driven up… Make some news such that the prices rise very high.)

Zomato shares are currently trading at a discount of more than 20% to the IPO issue price of Rs 76 per share from the previous year. The excitement was short-lived, however, as the stock dropped 8% on the day the anchor lock-in period of 30 days ended despite being listed at a premium of 66 percent on its market debut and reaching an all-time high of Rs 169 a share.

“I would pray to god so that the curse may fall on the dishonest anchor investors who pulled down the price. They should be blacklisted. I want to find out how long it will take the co to regain the old share prices. My holding is at the average rate of Rs 152 and I have 250 shares,” said a shareholder during the AGM.

“When the Zomato IPO came, I was happy to be allotted shares. The premium listing was short-lived. Today my capital is negative and I am in pain. Our bottom line is in red... While we make money on every transaction, why should we be operating at loss?” wondered another shareholder.

“Our current share price is 20 percent below the issue price… There are some factors beyond our control…. But the management is working hard to increase the top line and improve profitability", answering the question of Akshant Goyal, Zomato’s chief financial officer of Zomato.

Goyal also added that the company expects the food delivery business to show profits in the next few quarters. “At a company level we should break even in 6 months to 1 year… without (excluding) Blinkit which will take a bit longer.”

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Zomato CEO: Report speeding delivery riders on roads using number on their bag

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