
Online food delivery platform Zomato's CEO, Deepinder Goyal, on Friday dismissed claims made in a Reddit post about his company losing market share and descending into total chaos. Sharing the Reddit post on X, Mr Goyal labelled the allegations "utter nonsense" and reiterated that the company is not losing market share. "It is embarrassing to even clarify this - but doing it since many people reached out to me with concern," he wrote, assuring stakeholders and customers that the company remains on solid ground.
"All of this 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," Mr Goyal said in the post.
All of this - https://t.co/h20tWw0Sm5 - is utter nonsense.
— Deepinder Goyal (@deepigoyal) April 26, 2025
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.
It is embarrassing to even clarify this - but doing it since many…
The controversy erupted after a post on the subreddit StartUpIndia, purportedly from an anonymous Zomato employee, claimed that the food delivery platform has gone off the rails and is currently losing market share to competitors such as Swiggy and Zepto Cafe. "Things at Zomato seems to be going off the rails. In a recent internal huddle, leadership admitted we're losing a good chunk of the market share to Zepto Cafe and Swiggy," the social media user wrote.
They further claimed that Zomato employees are in panic and unhappy with the rules, such as ordering at least seven times a month and being "outright banned" from using other competition apps.
"The culture has become laughably inconsistent. On Monday, 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 read.
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According to the subreddit, the employees are subject to toxicity in the office, and the company is only gaining from the high platform fees. "Toxicity is baked in. Office politics as per, 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," it said.
Moreover, the post highlighted how delivery partners are underpaid and overworked compared to competitors. It claimed that this is why many delivery riders quit Zomato and join other platforms. "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 read.
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