Zepto, a start-up in quick commerce that grabbed instant fame with its promise to bring groceries in just 10 minutes, today finds itself at the hot center of controversy.
People, both employees and erstwhile employees, are letting out their grievances on social media such as Reddit, pointing towards all the toxic issues brewing around the company.
Claims regarding their exploitative working hours and poor leadership practices and bad ethics in business have triggered immense outcry among the public. This piece digs deeper into the accusations, their implications, and the growing cry for accountability.
Excessive Work Hours and Employee Burnout
One of the very serious accusations is against the hard work schedule at Zepto. Reports mention that the employees are allegedly asked to work for no less than 14 hours a day, which completely surpasses the norms of healthy hours.
Young professionals, who tend to be recruited in hundreds because of their low salary expectation, are said to carry the burden of this kind of work culture.
Multiple Reddit posts have pointed out that such meetings are scheduled at absurd hours sometimes even up to 2 AM. This has allegedly caused employees to be overworked and exhausted as their work-life balance has been disrupted.
A user on the subreddit r/StartUpIndia explained how employees are pushed to the limit to meet impossible deadlines with no regard for personal well-being.
In addition, meetings are sometimes delayed or badly planned, further contributing to inefficiencies and frustration among the workforce.
According to critics, such working conditions portend burnout and high attrition rates—the latter supported by reports that at least 10 employees leave the company every week.
Questionable Leadership and HR Policies
The leadership at Zepto also faces criticism for questionable practices. There are allegations that the company fails to differentiate between its marketing and HR functions, where it is claimed that one of the marketing executives acts as the head of HR.
According to critics, this reflects a low priority for workplace culture and employee welfare.
Furthermore, the company is rumored to be preparing for a massive round of layoffs starting in March 2024. Hiring has reportedly been frozen for most departments, creating an atmosphere of uncertainty and fear.
These layoffs, coupled with minimal salary increments during performance appraisals, have left employees demoralized.
Unethical Business Practices
Beyond internal work culture, accusations against Zepto also concern its app use of “dark patterns” that drain customers’ wallets dry. Customers have been informed to report overcharging charges in excess of ₹30,000 while purchasing smart phones from their respective app sites.
These charging methods raise some ethical concerns related to their customer trust and reliance upon the same.
Another troubling accusation involves data security. Employees have claimed that customer data is profiled extensively, with little attention given to addressing security vulnerabilities.
Despite multiple instances of data leaks, the company has allegedly prioritized investor demands for growth over rectifying these issues.
Copycat Product Design and Fake PR
Zepto’s product design has also been criticized for lacking originality. Reports suggest the company closely monitors its competitors, particularly Blinkit, and mimics their strategies in an attempt to stay competitive.
This approach has raised questions about Zepto’s innovation and long-term sustainability.
Even more disturbing are claims of fraudulent activities meant to create a positive public image. Employees have accused the company of manipulating data and asking its employees to post false information on LinkedIn and other social media platforms.
Critics say these tactics are meant to portray an image of success and growth but hide the internal struggles of the company.
Impact on Employee Health
The toxic work environment at Zepto has severely affected the employees’ physical and mental health. It has been reported that the tech teams have to work until 1 AM and only survive through stimulants.
The company, which consists of a majority of young people, is said to have less concern for their health, rather focusing on meeting deadlines and deliverables.
This fast-paced work environment, combined with an absence of adequate support systems, has cultivated a culture of burnout.
Employees are reportedly staying with the company not because they enjoy their work but because they hope to benefit financially from an upcoming IPO, expected within the next two years.
The Role of Social Media in Exposing Toxicity
The claims against Zepto began spreading after employees started posting about their experiences on social forums like Reddit.
A popular post called “Toxic Work Culture ft. Zepto” gained thousands of upvotes and comments. The post elaborated on issues such as bad management, unethical business practice, and lack of respect for employees’ time and effort.
These posts have caused widespread debate among netizens, who are expressing anger and disappointment. For a company that was once celebrated for its innovation and rapid growth, these revelations have dealt a significant blow to its reputation.
Statistics That Paint a Grim Picture
Although Zepto has not publicly addressed the allegations, the statistics shared by employees paint a troubling picture. For example:
1. Attrition Rate: It is said that the company loses at least 10 employees every week, and 20 are inducted to fill the gap.
2. Working Hours: The employees work for about 14 hours a day against the industry standard of 8-10 hours.
3. Layoffs: The biggest round of layoffs is due by March 2024, which will add to the existing instability.
4. Performance Appraisals: Many employees claim that performance appraisals are either cancelled or yield marginal increments, further depressing morale.
Public Backlash against Zepto
Netizens have demanded greater accountability and have urged the company to take a clear response on these issues. Some have even said that they would boycott the platform until there are tangible changes.
Startups, particularly those in the very competitive quick commerce sector, often have significant pressure to grow quickly. However, as the controversy surrounding Zepto demonstrates, this growth cannot be at the cost of ethical practices and employees’ welfare.
Broader Implications for Startups
The troubles that Zepto is experiencing are not alone but reflect the broader maladies of the startup ecosystem.
Many startups focus more on growth and profitability over the well-being of the employee, resulting in toxic work environments. Short-term gains often culminate in high attrition rates, poor morale, and reputational damage—things that may ultimately harm a company’s long-term prospects.
For startups to succeed sustainably, they need to be able to invest in developing a healthy work culture that includes reasonable expectations, good compensation, and transparent handling of ethical concerns. Companies that do not do this will lose the most valuable asset they have-employees.
What Zepto Needs to Do
As public outcry intensifies, Zepto has the chance to change the direction by facing these accusations. Some of the things that the company can do include:
1. Improving Work-Life Balance: Creating clear boundaries for work hours and respecting employees’ personal time.
2. Strengthening Leadership: Appointing experienced HR professionals to handle workplace issues and create a positive culture.
3. Enhancing Transparency: Communication about challenges and the steps being taken to address them.
4. Prioritizing Ethics: Re-examining and adjusting business practices to be ethically sound.
5. Focus on Employee Well-being: Resources and support for employees to deal with stress and maintain their health.
The Zepto controversy is a wake-up call for startups across industries. While rapid growth and innovation are important, they should never be bought at the expense of well-being or ethics.
How things will shake out in the days ahead remains to be seen in regards to whether Zepto will take steps to rebuild that trust and make the company a healthier workplace.
For now, the allegations serve as a stark reminder of the importance of prioritizing people over profits—a lesson that every company, regardless of its size, would do well to remember.