New Delhi, India – Zomato CEO Deepinder Goyal has strongly refuted allegations circulating on social media about the company losing market share and enforcing employee food orders through its platform.
Controversial Reddit Post Sparks Debate
An anonymous post on Reddit’s r/StartUpIndia claimed that Zomato was facing internal turmoil, including:
- Declining market share to rivals Swiggy and Zepto Cafe
- Mandatory orders requiring employees to use Zomato at least seven times a month
- Alleged toxic work culture, including micromanagement and public criticism
- Delivery partner issues, with claims of underpayment and rider shortages
The post further alleged that Rakesh Ranjan, former CEO of Zomato’s food delivery business, was abruptly removed from his role after urging employees to “stay focused.”
Goyal’s Firm Rejection
Dismissing the claims as “utter nonsense,” Goyal took to X (formerly Twitter) to clarify:
“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 that while he found it “embarrassing to even clarify,” he responded due to concerns raised by stakeholders.
All of this – https://t.co/h20tWw0Sm5 – 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.
It is embarrassing to even clarify this – but doing it since many…
— Deepinder Goyal (@deepigoyal) April 26, 2025
Zomato’s Market Position
Despite the rumors, Zomato has shown strong financial performance, reporting three consecutive profitable quarters, including a net profit of ₹138 crore in Q3 FY24. Analysts remain divided on market share, with some reports suggesting Swiggy’s faster growth, while others maintain Zomato’s lead (~50% vs. Swiggy’s ~45%).
Broader Industry Context
India’s food delivery sector remains highly competitive, with Zomato expanding its Blinkit quick-commerce arm while battling Swiggy and newer entrants like Zepto. Employee and delivery partner welfare has also been a growing industry concern.
Goyal’s statement aims to reassure investors and users, but the Reddit claims highlight persistent scrutiny over workplace culture and competition in the food-tech space.