A viral Reddit post, allegedly from a Zomato employee, raised eyebrows over the company's internal culture and competitiveness.
The post criticized the work culture as "toxic" and mentioned the abrupt resignation of Rakesh Ranjan, former CEO of Zomato's food delivery segment. However, Zomato has now made it clear that Ranjan has not resigned.
Zomato CEO Deepinder Goyal replied to the allegations in a tweet on X (formerly Twitter), calling the allegations "utter nonsense" and denying that the company was losing market share. He also rejected the charge that employees were forced to order from Zomato, asserting that the company has "freedom of choice" for its employees. Goyal was frustrated to have to explain the issue but did so after being asked several questions by concerned parties.
The anonymous post had also claimed that Zomato forced employees to place at least seven orders on the platform in a month, and there were checks in place to ensure compliance. Also, it had asked how delivery partners are treated company-wide.
This followed an earlier in-the-week media report which suggested that Ranjan was resigning as part of a leadership shake-up, with Goyal set to be in charge temporarily. Eternal Group, parent to food delivery company Zomato, later dispelled the rumors by indicating that Ranjan had not resigned and remained part of the leadership team. The company emphasized that leadership changes were a natural part of their ongoing efforts to increase organizational effectiveness.
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