Foodpanda which started its operation in India in 2012 has kicked off about 300 of its employees in its Indian units due to huge setbacks faced from its competitors.

Started as a online food ordering and delivery service in 2012, it now operates in 40 countries. Foodpanda is currently operational in 200 cities in India linking nearly 12,000 restaurants through its platform, which lets customers place order from nearby restaurants through a smartphone app or website.

Foodpanda is not the only food delivery startup in Indian lineup, there are several startup which focuses on making quick deliveries from nearby restaurants to homes and offices. Even Zomato entered the aggressive industry in February which was a huge setback for them. The online food service industry in India is being overcrowded day by day with several local startups. Apart from local services, the company has to compete with key players like Tinyowl, Spoonjay, Dazo and much more.

In a press statement, Foodpanda India claims the layoffs resulted from a more streamlined management process, which means tasks like filling in menus and making sure restaurant opening hours are correct are now automated.

Chief executive officer Saurabh Kochhar said, “The year 2015 has been an active and productive one for us. Being the pioneers and leaders of this industry, we encountered situations first and had to adapt and find solutions keeping customer experience at the core. While we continued to invest in processes and technology we also had to take some difficult decisions but we believe them to be necessary steps on our path to become sustainable and profitable within the targeted timeline.”

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