Google: Google shuts down Dunzo’s Google Workspace account, here’s why

Online delivery service Dunzo has reportedly shifted its entire employee work accounts from Google Workspace to Zoho. The quick-delivery platform is reportedly making this switch to bring down cost. According to a report by news agency PTI, Google suspended Dunzo’s Google Workspace access overnight over nonpayment for its cloud service.
The report claims that the sudden suspension of Google Workspaceresulted in the loss of Dunzo employees’ email history, which includes external emails, ongoing conversations with vendors, planning documents (which contained quarterly plans), sprint plans and more.Incidentally, Google is one of the investors in the company. Google invested $40 million in the company in 2021, it was among the company’s first few direct investments in the country.
What Dunzo has to say
The move from Google Workspace to Zoho is expected to help the cash-strapped company reduce its costs by more than 30%. A company spokesperson said: “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.”
Google is reported to charge the online delivery platform a minimum of Rs 1,600 per user/ per month for its enterprise plan offerings. In comparison, Zoho is said to offer the same services for Rs 489 per user/per month.

This move comes at a time when Dunzo is preparing to operate on a much smaller scale. The company posted a loss of Rs 1,800 crore in FY23 earlier this month. Dunzo’s losses have gone up by 288% since last year. The company is also planning to reduce its workforce to cut costs.

Several top-level executives, including co-founders and its finance head, have also departed the company. Dunzo also recently delayed the salaries of several employees.