Zomato CEO Pledges ESOP Worth Rs 700 Cr to Zomato Future Foundation

According to an internal note sent to Zomato employees, Zomato CEO Deepinder Goyal has committed his ESOPs proceeds worth 700 crores (net of taxes) to Zomato Future Foundation (ZFF). This will include, among other things, donations toward the education of up to two children of all Zomato Delivery Partners, special programmes for girl children, and higher education scholarships.

"100% of the proceeds from this ESOP vesting cycle are committed to ZFF." To maximize the benefit to ZFF and protect the interests of our shareholders, I do not intend to liquidate these shares immediately, but rather over the next few years. "For the first year, I will liquidate less than 10% of these ESOPs for this fund," Goyal stated in the note.

He also stated that ZFF will accept employee donations, look into other fundraising opportunities, and establish an independent governance board.

Zomato Delivery Partners who have been with Zomato for more than five years will receive up to Rs 50,000 per child per year. If the delivery partner stays with Zomato for ten years, this amount will be increased to Rs 1,000,000 per child per year. Women Delivery Partners will have lower service thresholds of 5/10. Furthermore, the company intends to have special programmes for girl children as well as to introduce "prize money" if a girl completes the 12th grade and graduates.

The foundation will also provide higher education scholarships to children who demonstrate exceptional performance and potential. In the event of an accident on the job, all Zomato Delivery Partners' families will be provided with educational and livelihood support, regardless of service tenure.

This announcement comes in the wake of growing concerns about the safety of delivery partners. The Indian Federation of App-based Transport Workers (IFAT) filed public interest litigation (PIL) in the Supreme Court in September 2021, seeking social security benefits for app-based transportation and delivery workers.

According to the PIL, the denial of social security to gig workers or platform workers has resulted in their exploitation, a violation of the Constitution's Articles 21 (Right to Life), 14 (Equality Before the Law), and 23 (Prohibition of Traffic in Human Beings and Forced Labor).

On Fairwork India's annual ratings of the working conditions of app-based gig workers in India, Zomato has improved its rating from 1 in 2020 to 3 in 2021. After Zomato was rated the worst in the Fairwork India Ratings in 2020, Goyal promised to "leave no stone unturned" to improve the working conditions of its delivery partners.