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Zomato faces claims of internal pressure and falling behind

by databiztimes.com
in Business
Reading Time: 2 mins read
0
Zomato faces claims of internal pressure and falling behind

Athira Sethu

Kochi, 28 April 2025

A Reddit post by a person claiming to work at Zomato has generated a lot of buzz online. The individual states that Zomato is struggling and gradually losing ground to other food ordering companies such as Swiggy and Zepto Cafe.

This individual also asserted that Zomato is making its staff members order at least seven times a month from Zomato itself. They informed that if employees don’t obey this rule, the company can trace it. As per the post, Zomato employees are instructed not to order food from other food delivery apps, particularly if they are within the office. The post further indicated that Zomato has a poor work environment, with several top executives departing in a short while, and that workers and restaurants are not satisfied.

CEO claims the accusations are false

Zomato CEO, Deepinder Goyal, immediately reacted to the post. He stated on social media that the story is completely false. He clarified that Zomato never gets employees to order food from the company. The employees are free to order from any place.

He stated, “All of this is complete nonsense. We are not losing market share, and we never compel employees to order on Zomato. We believe very much in freedom of choice.”

Some trouble in growth

Although the CEO assures us that everything is okay, there are indications that Zomato is feeling some pressure. The earnings of the company in the December quarter were not particularly robust, although this is typically a peak period for food ordering. Their Gross Order Value (the sum of all orders) increased only 2% from the last quarter. But it did increase 17% from the same period last year.

Meanwhile, Swiggy is faring better now and has a 43% market share. This implies Zomato could be in genuine trouble, although perhaps not as terrible as portrayed in the Reddit post.

What’s next for Zomato?

Despite all the chatting, Zomato appears intent on maintaining stability. It wishes to remain robust without laying off too many employees. To expand and earn more money in the future, Zomato will have to continue its employees, restaurant partners, and customers satisfied.

databiztimes.com

databiztimes.com

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