shortage of gig workers affects startups; Delhi collects a lot Rs 2,347 crore from the anchor investors

There is a huge shortage of delivery workers right now and online delivery companies are starting to suffer. On Tuesday, Swiggy told us he suspended Genie, his round-trip service, in three subways. Other platforms are taking longer to complete deliveries as many workers, fed up with skyrocketing fuel prices and high inflation, look for work elsewhere.

So in this letter:
■ Startups go to great lengths to stem friction and retain technicians
■ The demand for tech talent drives dropout of up to 50% in some jobs
■ Trading volumes soar in India as bitcoin plummets to $ 30,000


Shortage of concert workers affects food delivery, quick business startups

Food delivery platform

A sharp the shortage of delivery personnel is proving to be a major concern for online platforms, that are unable to meet rising demand amid supply-side challenges in the gig economy, the sources told us.

What is going on? Zomato, Swiggy and Zepto, among others, are seeing delivery times lengthen as workers battle rising fuel prices and high inflation, with some even choosing to return to pre-pandemic jobs.

Gig workers are self-employed and do not receive permanent employee benefits.

Fall: Swiggy has temporarily has closed its Genie pickup and delivery service through Mumbai, Hyderabad and Bengaluru, according to a person’s privilege to development.

The development reflects a broader trend among ultra-fast food and food delivery companies, which have faced severe motorcycle shortages over the past 6-8 weeks. This is largely due to fuel price increases not reflected in their compensation structures, according to sources. The price of gasoline has surpassed the Rs 100 mark in several cities. Mumbai has the highest fuel cost with gasoline retailing above Rs 120 and diesel at Rs 104.

Few gig-workers remain around

High churn: According to two people familiar with the matter, the churn rate among delivery staff for food delivery apps hovered around 40% on a monthly basis. This means that 40 out of 100 delivery workers will switch platforms or will leave this line of work in any given month. In addition, many online delivery companies have not been able to increase payments to their passengers despite the skyrocketing fuel prices.

Then read: Swiggy shutters Supr Daily operations in five cities


Delhi raises a lot of Rs 2,347 crore from 64 anchor investors before the IPO

Delhivery

Logistics and supply chain startup Delhi has a lot raised Rs 2,347 crore from 64 anchor investors prior to its initial public offering (IPO), which will open for subscription on May 11.

Details: About 48 million shares have been allotted to anchor investors at Rs 487 a piece, as the upper end of the price range for the IPO, according to investment bankers.

Some of the foreign investors who participated in the anchoring share award were Tiger Global, Bay Capital, Steadview, Fidelity, Baillie Gifford, Schroders, Amansa, Aberdeen Standard Life, GIC, Government Pension Fund Global, and Invesco HK, the sources said. banking.

Approximately 14.59 million shares have been allotted to seven national mutual funds such as HDFC, SBI, ICICI Prudential, Franklin Templeton, Invesco, Nippon and Mirae.

the Delhivery’s public number of Rs-5,235 crore will close for subscription on May 13th. The price range of the offer was set from Rs 462 to Rs 487 per share. Bids can be made for a minimum of 30 shares and subsequently multiples of 30 shares.

The offering includes a new issue of shares aggregating up to Rs 4,000 crore and an offer to sell by certain shareholders of existing companies aggregating up to Rs 1,235 crore.


Startups do everything for those with specific skills

Start-up taking

Indian startups are stepping up their efforts for retain workers with specific skills and stem high dropout rates offering interesting growth prospects.

What is required? Skills in data science, engineering, products, digital marketing, design, artificial intelligence and machine learning are playing a pivotal role and companies like Livspace, Urban Company, Chargebee, BankBazaar, Clear and API Holdings are doing everything they can to hire and retain. people with these skills.

Search how? Experts say that while salary adjustments and employee stock options are key, a big goal in new age companies is to ensure clear alignment to career paths, lead regular conversations with leadership, have monthly check-ins, give young people talents the opportunity to grow and manage training camps to improve skills.

The concept of “feed forward” conversations is also emerging as employees want sessions with managerial leadership to focus more on their broader career goals and not just on deliverables.

Who is doing what: Urban Company has identified the people in the teams with the potential to help grow for the next stage of growth. These employees are given broader mandates, problem-solving opportunities, and mentoring, said Neha Mathur, senior vice president of people success at Urban Company.

Companies like Chargebee, Clear, and BankBazaar are focusing on providing ample in-house employment opportunities and access to leadership. At BankBazaar, more than 30 percent of the roles are held by internal talent, said Sriram Vaidhyanathan, CHRO of the company.


The huge demand for tech talent drives friction to 50% in some jobs

Startup MAINTAINING THE TALENT

Even as $ 200 billion India’s IT industry battles unprecedented levels of attrition, Areas of attrition such as cloud computing, artificial intelligence, big data, are almost 50%, according to data collected and analyzed by ET.

Other highly sought-after skills include analytics and the Internet of Things (IoT), as well as cryptography, cybersecurity, and blockchain. The dropout rate in these jobs is close to double the 15-25% average dropout rate reported by companies in the January-March quarter.

Take a trip: Experts said even increases in the 40-120% range are not enough to retain employees with these skills. “Technology functions with the niche digital talent in demand have seen higher dropout rates, up to 45% in some industries,” said Anil Ethanur, co-founder of Xpheno, a personnel company.

Churn rates have been high across companies over the past few quarters as demand for tech talent continues to outstrip supply. The top four IT companies – TCS, Infosys, HCL and Wipro – reported record abandonment levels of 17.4%, 27.7%, 21.9% and 23.8% respectively in the March quarter, compared to high single-digit attrition rate and 10-year level a year ago.

Five lakh jobs created: Meanwhile, India’s IT services sector created more than 500,000 new jobs in fiscal 22, double what was expected, according to data collected by Xpheno and shared exclusively with ET. This is beyond hiring due to record high wear refills.

TWEET OF THE DAY


Trading volumes soar in India as bitcoin plummets to $ 30,000

Cryptocurrency Exchange

Exchange volumes on Indian cryptocurrency exchanges have surged after a drought like BitcoinThe world’s most valuable crypto asset fell more than 56% from its all-time high of around $ 69,000 in November 2021 to less than $ 30,000 on May 9.

Bitcoin prices have since stabilized at around $ 31,000, but have dropped around 20% since May 3.

The outcry from investors: In India, cryptocurrency trading platforms WazirX, CoinDCX, and Unocoin experienced a 20-75% increase in trading volumes, the companies told us.

Trading volumes on Indian cryptocurrency exchanges have declined since the new tax regime was introduced on April 1st. Additionally, payment aggregators and banks have severed ties to cryptocurrency exchanges.

We reported it on April 12th WazirX saw 65-90% of its business vanish after the Mobikwik e-wallet has disabled its services on the platform. Trading volumes on other exchanges such as ZebPay and CoinDCX hit a six-month low in April.

But the last two days have been different. CoinDCX said its volumes doubled on May 10 from the previous day.

Smile and bear it: Meanwhile, Indian investors who jumped on the cryptocurrency bandwagon en masse in 2021 are seeing their losses rise as the bears take over.

Experts have said that most new Indian investors have only seen cryptocurrency prices rise, but are now taking a severe shock when they see their wallets erode sharply.


Other main stories from our reporters

Bharat Pe

BharatPe vows to recover Grover’s shares: Fintech firm BharatPe said Tuesday it would recover limited shares of a “former founder”, swearing to “take steps to enforce their right under the law”. Although the statement did not include the names, it was clear that the company was referring to its co-founder and former CEO Ashneer Grover, who left BharatPe after a months-long dispute earlier this year.

Buy $ 100 Million Great Learning: The Byju Great Learning Group company has acquired Singapore’s executive education provider Northwest Executive Education for about $ 100 million in a stock and cash deal, the sources told us.

CoinDCX will invest Rs 100 crore in 12 months: The cryptocurrency exchange CoinDCX wants invest Rs 100 crore over the next 12 months through its venture capital arm CoinDCX Ventures. The business branch will write checks ranging from $ 100,000 to $ 1 million for web3 companies in seed for Series A rounds around the world. It intends to make between 40 and 80 investments.

CoinSwitch Kuber to double the workforce: CoinSwitch Kuber said it plans to do so doubles its headcount to over 1,000 by the end of the calendar year. He said he plans to triple his engineering team to around 300 people by the end of the fiscal year.


Global choices we are reading

■ Musk says his plans on Twitter are in line with EU rules (WSJ)
■ Google and Meta’s submarine cables raise the stakes in controlling the Internet (rest of the world)
■ Netflix ad-supported tier and crackdown on password sharing could be launched by the end of 2022 (The Virgins)

Today’s ETtech Morning Dispatch was curated by Zaheer Merchant in Mumbai and Judy Franko in New Delhi. Graphics and illustrations by Rahul Awasthi.