Deepinder Goyal reacts to Reddit post alleging ‘internal chaos’ at Zomato, says ‘it’s embarrassing’

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Deepinder Goyal reacts to Reddit post alleging 'internal chaos' at Zomato, says 'it's embarrassing'


The Reddit post had alleged that “in a recent internal huddle, leadership admitted we’re losing a good chunk of the market share to Zepto Cafe and Swiggy. The reaction? Panic and ridiculous new rules.

New Delhi: Deepinder Goyal, Zomato Founder and Chief Executive Officer (CEO), has rejected an anonymous Reddit post alleging that things were going off the rails with the company, rebranded as ‘Eternal’, losing market share to ‘Zepto Cafe’ and ‘Swiggy’ and forcing employees to order from its food delivery platform. The post also claimed that the work culture has become laughably inconsistent with toxicity baked in, and the only thing keeping the company profitable now is platform fees, and the crisis compounded by underpaid and overworked delivery partners.

In a post on X on Saturday, Goyal said, “All of this -reddit.com/r/StartUpIndia’¦ – is utter nonsense. Neither are we losing market share, nor will we ever force our employees to order on Zomato. Freedom of choice is something we stand for vehemently.”

He further said “it is embarrassing to even clarify this- but doing it since many people reached out to me with concern. And thanks everybody for your concern and appreciate it”.

What was written in the Reddit post for Zomato? 

The Reddit post had alleged that “in a recent internal huddle, leadership admitted we’re losing a good chunk of the market share to Zepto Cafe and Swiggy. The reaction? Panic and ridiculous new rules. One of them: employees must order from Zomato at least seven times a month and yes, they’ll track it. Ordering from competitors is outright banned in the office”. It claimed that on Monday (April 21), Rakesh Ranjan, the CEO of Zomato’s food delivery business is on Slack doing a townhall, telling everyone to “stay focused” and “get back on track.” By Wednesday, he’s removed from the role. “You seriously can’t make this stuff up. No clear direction, just a game of musical chairs in leadership and everyone’s shitting their pants not knowing what will happen next,” the post stated.

“The only thing keeping the company profitable now is platform fees unbelievably. Internally, no one seems to care about long-term sustainability, just numbers. One of the biggest crises right now is the delivery partners. They are being underpaid and overworked. Compared to competition who Zomato pays significantly less and sometimes nearly half. As a result, many riders are quitting or switching platforms,” the post said.

It further claimed that Zomato might still look shiny from the outside but inside, “it’s falling apart”.

Rakesh Ranjan not resigned from Zomato 

Eternal, formerly Zomato, on Thursday (April 24) clarified that its food delivery CEO Rakesh Ranjan has not resigned and that any reshuffling of the leadership team at the company is a standard practice as part of its efforts to optimise organisational effectiveness. The clarification through a regulatory filing came in response to a media report on the stepping down of Ranjan.

“We would like to clarify as on date, there has been no resignation tendered by Rakesh Ranjan and he still continues to be part of the leadership team. At Eternal Group, internal reshuffling of the leadership team is considered a standard practice as part of the company’s ongoing efforts to optimise organisational effectiveness,” Eternal said.

Earlier this month, the food and grocery delivery platform officially changed its name to ‘Eternal Ltd’ on the stock exchanges following approval from the Ministry of Corporate Affairs. The brand name of the company’s food delivery business, Zomato remains the same, along with the app.

(With agencies inputs) 



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