The food delivery industry has been going through some significant changes in the past few years. On the one hand, it has experienced tremendous growth due to the pandemic, as more people stayed at home and ordered food online. On the other hand, the industry has also faced many challenges, including fierce competition, rising costs, and changing customer preferences.
Recently, two leading food delivery companies in Brazil, iFood and Swiggy, have made headlines due to their cost-cutting measures and layoffs. In a bid to survive the challenging economic climate, both companies have had to make some tough decisions.
iFood, one of the largest food delivery apps in Brazil, announced on Wednesday that it had dismissed 355 professionals, equivalent to 6.3% of its workforce in Europe. The layoffs affected employees in various areas, including software engineering, product management, business development, marketing, and user experience. The company attributed the decision to the current world economic scenario, which has required companies to take immediate action to face these adversities.
Meanwhile, Swiggy, the leading food delivery app in India, has been cutting costs amid slow growth in its food delivery business and a funding crunch caused by macroeconomic factors. The company recently sold its cloud kitchen business to Kitchens@ in exchange for shares, and it has exited the meat delivery business. The company also fired more than 300 employees, according to CEO Sriharsha Majety. Swiggy’s struggles have been reflected in its financial results, which showed consolidated losses of Rs 3,628.9 crore for the financial year 2022 versus Rs 1,616.9 crore in the preceding financial year.
While these cost-cutting measures may be necessary for the survival of these companies, they also have a significant impact on the affected employees and their families. It’s essential for companies to handle these situations with care and respect for those involved.
As the food delivery industry continues to evolve, companies will need to adapt and innovate to remain competitive. We can expect to see more changes and challenges in the coming years, but hopefully, these companies will find ways to overcome them and continue to provide valuable services to their customers.#grocerydelivery #fridaytakeaway #qcommerce #instantdelivery