Foodtech

Zomato CEO Issues Warning to Startup Founders: Adapt or Perish

• ByStartupStory     |    March 26, 2024

In a recent address at the Startup Mahakumbh held in New Delhi, Deepinder Goyal, the founder and CEO of Zomato, issued a stark warning to fellow startup founders, emphasizing the critical need for innovation in the face of evolving technology. Goyal cautioned that existing business models would become obsolete within a decade or two due to the rapid pace of technological advancement.

“With all the tech and distribution systems that are changing, no business model will last beyond a decade or two. Startups will have to innovate and create new businesses out of the outcomes that they have created so far if they have to last longer,” stated Goyal during his speech at the event.

Highlighting the challenges of building long-lasting enterprises in today’s dynamic landscape, Goyal underscored the necessity for companies to disrupt their own businesses continually. “For Zomato, it is all about how we disrupt our own businesses. Zomato is already at version four in its 16-year journey,” he remarked.

Goyal hinted at the potential for Zomato’s quick commerce venture, Blinkit, to surpass its flagship food delivery service in the near future. Zomato had acquired Blinkit (formerly Grofers) in a significant deal worth Rs 4,447 crore in 2022, aiming to tap into the burgeoning instant delivery market in India.

However, Zomato recently faced criticism over its decision to introduce a “Pure Veg Mode” service, prompting Goyal to announce a rollback of certain initiatives. In response to concerns raised regarding the segregation of riders based on uniform colors, Goyal clarified that all Zomato delivery riders, including those serving vegetarian customers, would wear the company’s signature red uniform.

“While we are going to continue to have a fleet for vegetarians, we have decided to remove the on-ground segregation of this fleet on the ground using the colour green. All our riders — both our regular fleet, and our fleet for vegetarians, will wear the colour red,” stated Goyal in an update post on social media.

The move comes amidst growing scrutiny over the company’s policies, underscoring the importance of responsiveness to consumer feedback and evolving societal norms.

 

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