Zomato CEO Deepinder Goyal announced on Friday that he would donate all proceeds from the employee stock options (Esops) he received from investors and the board of directors to the Zomato Future Foundation (ZFF).
At Zomato’s average share price over the past month, these Esops are worth around $90 million, he said in a note.
He added that the Future Foundation will also accept donations from other Zomato employees and will look at other fundraising avenues.
It also plans to set up an independent governance board.
Food delivery companies in India have been under pressure from gig workers, who protested on Twitter last year, saying they are treated poorly and not paid enough
ZFF will cover the education of up to two children of all Zomato Delivery Partners.
This will be up to Rs 50,000 per child per year on actuals, for workers above a certain service quality benchmark and who have been on Zomato’s fleet for more than five years.
If the worker stays with the company for 10 years, the amount will increase to Rs 100,000 per child every year.
Zomato’s five-year and 10-year eligibility criteria are a way of countering the high churn in the gig economy, an industry source said, with about 60-70% of delivery workers moving on within months.
ZFF will also provide higher education scholarships over and above these limits for children with higher performance and potential, it said.
The foundation will also assist families of its delivery partners (regardless of service term) with educational and livelihood support if they, for instance, suffer an accident while on the job.
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