Rakesh Ranjan, who was elevated to Chief Executive of Food Delivery at Eternal (Zomato parent company) in May 2023, has stepped down from the role amid an internal restructuring.
However, he continues with the organization in a different capacity. Deepinder Goyal, co-founder and CEO of Zomato, will temporarily oversee the food delivery vertical until a new leader is appointed.
Internal and external candidates are currently being evaluated, with an announcement expected in the coming months.
Market Dynamics and Competitive Pressures
Zomato food delivery arm faces increasing competition, particularly from Swiggy, which grew its market share to 43% in the October–December quarter, up from 42% in the previous quarter.
Analysts warn that Zomato may lose further ground if rivals continue scaling their rapid delivery models.
To counter this, Zomato has integrated a rapid delivery feature within its main app and Blinkit, its quick commerce platform.
This move, however, sparked criticism from the restaurant community over potential conflicts of interest and operational strain.
Growth Challenges and Strategic Outlook
Despite the festive October–December quarter, typically a strong season for consumption, Zomato saw only modest growth in its food delivery segment.
Gross Order Value (GOV) rose just 2% sequentially to ₹9,913 crore, though it reflected a 17% year-on-year increase.
In a March interview, Deepinder Goyal acknowledged systemic challenges in the business. “Food delivery has multiple systemic issues that need to be solved…
I’m hoping we can launch some of these solutions in the next three months,” he said, signaling a more strategic push towards resolving friction points and aligning the interests of customers, restaurants, and the platform.
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