Zomato CEO Deepinder Goyal raised objections to a recent viral Reddit post alleging “internal chaos” in his company, dismissing the claims as “utter nonsense”.
Zomato boss dismisses Redditor's claims
Goyal clarified that Zomato is neither suffering losses nor forcing employees to place orders through its platform.
“All of this is utter nonsense,” he wrote while quoting the Reddit post. “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 added.
The entrepreneur mentioned that it is embarrassing on his part to even mention the matter, but as many people on social media are getting worried and reaching out to him, he thought of addressing the matter in public.
“It is embarrassing to even clarify this - but doing it since many people reached out to me with concern,” he wrote.
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The viral Reddit post
The Reddit post by “Spiritual-Mode-5374” on the platform’s “StartUpIndia” community claimed that Deepinder Goyal’s firm is lately “off the rails”.
The post went on: “In a recent internal huddle, leadership admitted that they are 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.”
The post further claimed that the company removed its CEO, Rakesh Ranjan, after he told everyone to “stay focused” and “get back on track”.
Goyal’s company, however, denied his departure.
“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,” the company said in an exchange filing.
“Toxicity is baked in. Office politics, micromanagement, and public degradation of employees for the bare minimum are becoming the norm. The only thing keeping the company profitable now is platform fees, unbelievably. Internally, no one seems to care about long-term sustainability, just numbers,” the Redditor claimed.
It also pointed out that the delivery partners are “underpaid and overworked”.
“…Zomato pays significantly less and sometimes nearly half. As a result, many riders are quitting or switching platforms,” it further added.
“Who gets blamed? Everyone except the people responsible for fixing this broken model,” the Redditor claimed.
It went on elaborating, “Restaurant partners are fed up too. They’re pushed into spending on ads just to remain visible, with no real help or insight into performance. Most of them are left in the dark, and even basic support is a nightmare. Everyone’s chasing targets.”
“Customers are frustrated. Riders are frustrated. Restaurant partners are frustrated. It’s a vicious cycle. Zomato might still look shiny from the outside, but inside, it’s falling apart,” the post concluded, mentioning that frustration runs deep across the company’s ecosystem.
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