Zomato Faces Internal Whistleblower Allegations, CEO Deepinder Goyal Calls Claims “Utter Nonsense”

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New Delhi, 29th April 2025: Online food aggregator Zomato has found itself at the center of controversy after an internal whistleblower’s viral post alleged a deep crisis within the company, prompting CEO Deepinder Goyal to issue a public clarification. The whistleblower, reportedly a Zomato employee, claimed that the company is losing market share to competitors like Zepto Cafe and Swiggy, and that employees are being pressured to place a minimum of seven orders per month through Zomato. The post also alleged that ordering from rival platforms inside the office is banned, and described the internal work environment as tense following the sudden removal of Rakesh Ranjan, who served as Zomato’s Food Delivery CEO.

The controversy began when the anonymous post surfaced on social media, raising concerns about Zomato’s internal culture, employee morale, and business performance. The whistleblower claimed that senior management is focused on short-term gains rather than long-term growth, which, according to the post, has led to an exodus of employees to rival companies such as Zepto. The post further alleged that customers, delivery riders, and restaurant partners are dissatisfied, painting a picture of a company that appears strong externally but is “breaking from within.”

Reacting to these claims, Deepinder Goyal, CEO and co-founder of Zomato, took to social media platform X to address the allegations. Goyal categorically denied all the accusations, stating, “This is utter nonsense. We are not losing market share, nor do we ever force our employees to order from Zomato. We believe in freedom of choice. Thank you for your concern, but I appreciate your worries.” Goyal emphasized that the company is not experiencing any market share loss and that employees are not required to order exclusively from Zomato, countering the whistleblower’s claims of internal coercion.

The viral post also highlighted the abrupt removal of Rakesh Ranjan, who was responsible for Zomato’s food delivery division. According to the whistleblower, Ranjan was dismissed immediately after a meeting with employees, which further fueled speculation about instability within the company’s leadership. Zomato has not issued any official statement regarding the reasons for Ranjan’s departure, but Goyal’s response focused on refuting the broader allegations of a toxic work environment and declining business performance.

Industry observers note that the food delivery sector in India is highly competitive, with companies like Swiggy and Zepto Cafe aggressively expanding their market presence. The whistleblower’s post suggested that Zomato’s senior executives are prioritizing rapid profits over sustainable growth, leading to increased employee turnover and dissatisfaction. The post claimed, “Customers are troubled, riders are troubled, restaurant partners are troubled. This is a bad phase. Zomato may look good from the outside, but inside the company is breaking apart.”

Despite these claims, Deepinder Goyal maintained that Zomato’s operations remain strong and that the company continues to focus on both employee well-being and customer satisfaction. He described the need to respond to such rumors as “embarrassing,” but stated that he felt compelled to clarify the situation due to mounting questions from stakeholders and the public.

As the situation unfolds, stakeholders and market analysts will be closely watching Zomato’s next steps and any further communication from the company’s leadership. The incident has sparked a broader conversation about transparency, workplace culture, and the pressures faced by India’s leading tech startups in a fiercely competitive environment. While Deepinder Goyal’s statement seeks to reassure employees, partners, and investors, the company may need to take additional measures to address internal concerns and maintain its reputation in the market.