After blitzing ahead with expansion, global online restaurant listing and reviews company Zomato has now adopted a cautious note as it plans to streamline its business, which includes a reduction in its staff strength.
Around 300 jobs or 10 per cent of Zomato’s total workforce are expected to come under the axe in the process.
In a recent blog post, Zomato Founder Deepinder Goyal highlighted the company’s roadmap that specified that the company was looking to streamline its operations.
“The next few months are going to be hard for all of us. But we’ll stick together, hustle, and not spend time over thinking things or being unnecessarily creative, so we can get to where we want to be,” Goyal said.
“Over time, as we fully transition to Content 2.0, we will need leaner content teams across the world,” he added.
The company has identified four regions — India, the Middle East, Southeast Asia (the Philippines and Indonesia) and ANZ (Australia and New Zealand) — to sell its full suite of products. In the other countries, Goyal shared, Zomato’s existing model of collecting content and building community relations has not been working and, therefore, alternate models will need to be identified and implemented.
In the smaller regions, Zomato will not look at ad sales, but focus on transaction businesses, with a majority of the effort going into selling its table reservation engine Book.
“We will focus less on on-the-ground community building and marketing activities… This means that in these regions, our operations will need fewer people to run the show compared to the past,” Goyal said.
As a part of the streamlining drive, Zomato has announced the shutting down of its Cashless product in Dubai — eight months after it was launched. “We’ve decided to shut down the business due to a lack of product-market fit in its current form,” stated Goyal, in another post.
It plans to re-introduce Cashless to Dubai and more markets once it develops an ecosystem with the implementation of its Base and Book — point-of-sale and table management systems.
Last month, Zomato had raised US$60 million in a fresh round of funding, taking its total funding raised to date to approximately US$225 million.
Founded in 2008, Zomato provides detailed restaurant information such as menus, contact details, pictures, geocoded maps and user reviews for 1.4 million restaurants. It sees over 90 million visits across its web and mobile platforms every month. It has a presence in 22 countries.
The firm recently expanded its offering to include in-app cashless payments, online ordering, table reservations and a point-of-sale system to help connect restaurant businesses and customers.
Since July 2014, the startup has acquired nine companies to further extend its global reach in the restaurant search space. These include Urbanspoon, which gave the restaurant listing major a dominant position in Australia, US and Canada.