Dunzo Transitions Employee Accounts from Google Workspace to Zoho, Citing Cost Reduction

Dunzo, a grocery delivery provider, has shifted all employee accounts from Google Workspace to Zoho in a bid to curtail expenses, following a suspension of its Google Workspace access due to nonpayment to a cloud consultant.
DunzoThe sudden transition from Google Workspace, which encompasses essential tools like Gmail, Meet, Sites, Calendar, AppSheet, and more, was reported to have occurred overnight due to a payment issue with the cloud consultant. This transition is anticipated to reduce costs by at least one-third for the financially strapped company.

However, the abrupt suspension of Google Workspace resulted in significant data loss for Dunzo employees. Email history, including external communications, ongoing discussions with vendors, planning documents (including quarterly and sprint plans), among other critical information, were affected, Moneycontrol news site reported.

Confirming the shift, a company spokesperson stated, “This migration is just a regular business decision. There were some initial teething issues for the first couple of days, but all of these have been ironed out now.”

According to Dunzo’s website, Google charges a minimum of Rs 1,600 per user monthly for its enterprise plans. In contrast, Zoho offers a similar arrangement at a substantially lower cost of Rs 489 per user per month.

The transition to Zoho coincides with Dunzo’s recent workforce reduction efforts as the company aims to downsize its operations. Earlier in the month, Dunzo reported a significant loss of Rs 1,800 crore in FY23, marking a staggering 288 percent increase from the previous year. The company has also faced the departure of several key executives, including co-founders and its finance head, alongside delays in salary payments to some employees.

This move underscores Dunzo’s strategic measures to streamline costs amidst financial challenges and organizational restructuring, indicating a concerted effort to optimize operational expenses and sustain its market presence in the evolving delivery landscape.