In a recent interview with Moneycontrol, Zomato's founder and CEO, Deepinder Goyal, discussed various aspects of the evolving food delivery landscape, competition, and his experiences managing a publicly listed company.
Goyal reflected on Zomato’s position in India’s rapidly growing food delivery and quick commerce sectors, particularly in light of Swiggy's upcoming $1.25 billion IPO. He also shared insights into how the rivalry between the two companies has intensified, with both platforms competing for market leadership. Despite the increasing competition, Goyal revealed a personal quirk that set him apart—he has never ordered food from any platform other than Zomato.
In response to a question about whether he had tried using competitors like Swiggy or new platforms such as the Open Network for Digital Commerce (ONDC), Goyal’s answer was clear: "No, I have not ordered food outside of Zomato. Never ever. Never ordered on Swiggy, nor opened anybody else’s app."
This remark came at a time when Swiggy is increasing its brand presence ahead of its IPO and decided to sponsor "Shark Tank India" by paying Rs 25 crore and removing Goyal as a judge as part of the deal.
Zomato and Swiggy have been fierce competitors in India’s food delivery market and the booming quick commerce sector, which has ballooned to $5.5 billion in just under four years. While the two companies were evenly matched in the past, Zomato has taken a clear lead in recent years.
Recently, Goyal also shared insights into one of the most challenging moments in the company’s history. During an interview at the ET Startup Awards 2024, he reflected on a time in 2018 when Zomato was faced with a significant financial hurdle. He revealed that the only moment he felt a sense of impending defeat was when arch-rival Swiggy secured a massive $1 billion in funding, while Zomato had just $35 million in the bank. Swiggy's funding round, led by Naspers, marked the largest investment in India's food tech sector at the time, further intensifying the competition between the two companies.
"The only one moment like 'Oh sh**, we're dead' was when Swiggy raised $1 billion and we had $35 million in the bank," Goyal candidly remarked.
Meanwhile, Goyal shared a personal experience from when he teamed up with his wife Grecia Munoz and became a Zomato delivery agent in Gurgaon. Dressed in the signature red delivery uniform, he attempted to collect an order from Haldiram's at Ambience Mall but was refused entry by security. Instead, Goyal was directed to use the service stairs, requiring him to climb three flights to reach the restaurant.
This incident shed light on the challenges faced by delivery workers, particularly in large establishments. Reflecting on this experience, Goyal took to X (formerly Twitter) to advocate for better treatment of delivery agents, noting that malls need to be more considerate and humane in their approach.
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