Image Source: Goodreturns
Zomato CEO Deepinder Goyal has squarely rebutted charges in an anonymous post on Reddit stating that the company is losing market share to rivals and imposing strict guidelines on workers to order food solely from its platform. The viral post raised alarms regarding Zomato's work culture and operational issues as well. A detailed explanation is as follows:
Main Points
Reddit Claims:
The anonymous post asserted that Zomato, now known as Eternal, is losing market share to Zepto Cafe and Swiggy.
It accused employees of being required to order from Zomato a minimum of seven times a month, with tracking mechanisms, and being prohibited from using rival platforms.
Deepinder Goyal's Response:
Goyal brushed off the allegations as "utter nonsense" in a social media post, highlighting that Zomato represents "freedom of choice."
He made it clear that the company is not losing market share or laying down such conditions for employees.
Work Culture Issues:
The work culture of Zomato was portrayed as "toxic" in the Reddit post, referring to micromanagement, public humiliation of employees, and leadership churn.
It also referred to problems with underpaid and overworked delivery partners, resulting in high turnover rates.
Leadership Shuffling:
The post spoke about the abrupt ouster of Rakesh Ranjan, CEO of Zomato's food delivery business, after a town hall meeting.
Zomato explained that Ranjan hasn't resigned and leadership re-shuffling is normal procedure to maximize organizational efficiency.
Operational Challenges:
The post alleged that delivery outages and customer dissatisfaction were on the rise due to underpaid delivery partners and operational inefficiencies.
Zomato refuted these allegations, reaffirming its commitment to long-term sustainability and well-being of employees.
Company's Stance
Goyal thanked those who contacted him with concerns and ensured stakeholders of the company's solid market position and high ethical standards.
This language highlights the problems for companies in dealing with misinformation and being transparent in the age of the internet.
Sources: Economic Times, Livemint, Business Standard
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