Zomato, recently renamed as Eternal, is facing allegations that it is mandating employees to order food from its platform at least seven times a month. The claim surfaced through an anonymous Reddit post, where a user alleged that the company, concerned about losing market share to Zepto Cafe and Swiggy, introduced new internal rules, including banning employees from ordering food from rival platforms while at the office.
Responding to the allegations, Zomato CEO Deepinder Goyal took to the social media platform X (formerly Twitter) to deny the claims. He clarified that no such policy forcing employees to order food through Zomato is in place.
“All of this – https://reddit.com/r/StartUpIndia/comments/1k7j841/zomatos_internal_chaos/ – 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 people reached out to me with concern. And thanks everybody for your concern.. appreciate it,” he posted on X.
The Reddit post also criticised the company’s work culture, describing it as increasingly toxic, with accusations of micromanagement, office politics, and public criticism of employees. It further claimed that Rakesh Ranjan, CEO of Zomato’s food delivery business, was set to exit — a claim Zomato has also denied.
It is worth mentioning that Zomato has been grappling with various leadership exits. Earlier this month, Rinshul Chandra, Chief Operating Officer (COO) of Zomato’s food delivery business, stepped down from his role. According to Chandra, his decision to exit the company is aligned with evolving personal and professional goals. His exit was another key transition in the company’s top leadership amid broader organisational changes.
Food delivery market in India
The online food and delivery market is growing exponentially in India. With a CAGR of 22.25 % from 2025 to 2033, it is expected to reach US$ 265.12 billion by 2033 from US$ 43.47 billion in 2024 Changing consumer preferences, technological advancements, increased internet penetration, the proliferation of smartphones, convenience factor, and a burgeoning middle-class population have significantly contributed to the growth trajectory of the online food delivery market in India. COVID-19 pandemic was another factor that accelerated the growth of the online food delivery market in India. In 2021, there were over 624 million smartphone users in India, and the number is still rising, according to a report by the Internet and Mobile Association of India (IAMAI).
Swiggy, Zomato, and Uber Eats (now merged with Zomato) are prominent players in the online food delivery segment. They offer a wide array of restaurant options and diverse cuisines, making it convenient for consumers to access their favorite meals with just a few clicks.
These food delivery apps have made their way to smaller cities and towns. It shows that the way to food delivery business in India is set to witness remarkable growth. The technological advancements are expected to enhance the customer experience, streamline operations, and optimise delivery routes.
With increasing consumer demand, technological advancements, and a competitive landscape, this industry is set to remain a significant player in the Indian food service sector for years to come.
