Zomato announced a key leadership change today with Rakesh Ranjan stepping down from his role as the CEO of its food delivery business. Ranjan, who was appointed to the position in May 2023, will continue with Zomato in a different capacity. Founder and Group CEO Deepinder Goyal will temporarily oversee the food delivery vertical until a permanent replacement is finalized.
The leadership reshuffle comes at a critical juncture for Zomato as the food delivery sector faces a slowdown and heightened competition. Rival Swiggy captured 43% market share during the October–December quarter, raising concerns among analysts about Zomato potentially losing ground as competitors accelerate their rapid delivery services.
In response to the shifting landscape, Zomato has integrated its quick commerce platform, Blinkit, into its main app, introducing its own quick delivery option. However, this strategic move has drawn criticism from the restaurant community, who have raised concerns over the impact on traditional food delivery operations.
Despite the festive-heavy October–December quarter, Zomato’s food delivery growth remained muted. The company’s Gross Order Value (GOV) rose just 2% sequentially to ₹9,913 crore, although it marked a 17% year-on-year increase.
Addressing the broader challenges in a March interview, Deepinder Goyal stated, “Once we solve these, the interests of Zomato, restaurants, and customers will align towards growth.” His remarks highlighted the company’s focus on systemic improvements to drive sustainable growth across its business segments.
The leadership reshuffle is seen as a proactive measure by Zomato to realign its internal structure and strategy amid evolving market dynamics. With Goyal at the helm of the food delivery vertical in the interim, the company is aiming to stabilize operations, strengthen partnerships with restaurant stakeholders, and chart a path for renewed growth.
Zomato emphasized that it remains committed to enhancing the food delivery experience for customers while supporting its restaurant partners through innovation and collaboration.
About Zomato:
Founded in 2008, Zomato is a leading food services platform providing food delivery, dining-out services, and hyperlocal commerce through its various platforms including Blinkit. With a strong presence across India and other global markets, Zomato continues to innovate to meet evolving consumer needs.