Zomato, the online food integrator, went public in the share market on 23/Jul/21 and the opening share price was Rs.115/- (~51% higher than its issue price of Rs.76/- per share). It means the company is now valued at Rs.1 lakh Crore+ in the market.
Does Zomato make any food?:
No. Restaurants make food. Restaurants buy raw materials, they employ cooks and they produce the food.
Then, what Zomato does?: They provide ‘food delivery service’ (called ‘online food aggregators’).
You order food from a restaurant using the Zomato App and one of their delivery boys go to that restaurant, picks up the food you ordered and reach it to your doorstep.
Around 3.2 cr users use Zomato service every month. They have around 3.9 lakhs restaurants listed in their App and operate in 525 cities.
Does Zomato produce anything?:
No, nothing.
Then, what is this 1 lakh cr value for? For their ‘food delivery’ service.
Who does this ‘delivery’ service?: Zomato’s ‘food delivery’ boys.
So, 1 lakh cr for the ‘delivery service’?: Yes. The service offered by the 1.7 lakh delivery boys collectively is now valued at 1 lakh cr. In other words, these delivery boys have a collective value of 1 lakh cr. They value ₹58 lakh per head.
So, all the ‘delivery boys’ became ‘millionaires/crore-pathis’, huh? :
Dream on! They are not even employees! They are all part-time contractors.
The wealth one lakh crore is the exclusive property of promoters.
They roughly make around Rs.400 – Rs.500/- per day (around Rs.15 for per pick-up point and Rs.15 for drop-off point), toiling under the sun and rain, 12-14 hrs a day, 365 days a year, just enough to survive.
They are not organised with No minimum wage No leaves No bonus No gratuity.
How about Zomato employees then?: Sorry, they get pink-slips and pay-cuts!
As on May,2020, Zomato had 4000 employees. Out of these, they laid off 520 employees in May,2020. As per their CEO, they didn’t have enough work because of corona. So, 520 employees of the 1 lakh cr company had to go jobless at the time of pandemic!
So, who get all those 1 lakh cr?: Those who never have delivered even a single food packet!
If you still didn’t get it, read Karl Marx again!
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