In a strategic leadership reshuffle that has caught industry watchers’ attention, Zomato—recently rebranded as Eternal—has announced that Rakesh Ranjan, the CEO of its food delivery vertical, will be stepping down. The company’s founder and Group CEO, Deepinder Goyal, will now directly oversee the core food delivery operations, marking a significant leadership transition at a critical time for the foodtech giant.
Back to the Helm: Deepinder Goyal Steps In
Deepinder Goyal, who founded Zomato and has long been the face of the company, is returning to the driver’s seat of its food delivery arm. This move comes less than a year after Ranjan assumed the CEO position in June 2023.
According to a report by Moneycontrol, Goyal’s decision to take direct control is part of a periodic leadership realignment that Zomato implements every few years. The objective? To streamline operations, tighten execution, and navigate changing market dynamics with greater agility.
Insiders believe that Goyal’s deep understanding of the brand, along with his hands-on leadership style, could help the company weather the current industry storm.
Ranjan’s Legacy: Stability in Tough Times
Although stepping down, Rakesh Ranjan isn’t exiting Zomato altogether—he’ll stay on in another role, the specifics of which remain under wraps. During his tenure, Zomato not only maintained but also strengthened its position as India’s leading food delivery platform, holding its own in a fiercely competitive market dominated by its key rival, Swiggy.
However, his exit coincides with a challenging period for the food delivery industry as a whole. In a shareholder letter dated January 20, Ranjan acknowledged that a demand slowdown began in the latter half of November 2024, impacting order volumes and user growth across the board.
Sector Headwinds: Slowing Demand, Rising Competition
Zomato’s leadership transition comes at a time when the entire quick commerce and food delivery sector is under pressure. Post-pandemic consumer behavior, inflationary trends, and changes in urban lifestyles have led to a dip in delivery frequency and average order values.
Additionally, market share skirmishes with Swiggy have intensified. While both platforms have diversified into quick commerce and grocery delivery, food remains the core revenue driver—and the battleground is heating up.
Adding to the churn, Rinshul Chandra, the COO of Zomato’s food delivery business, also exited earlier this month. Two top-level changes in quick succession reflect an organization in flux, recalibrating its leadership to tackle external and internal challenges.
Market Reacts: Investors Stay Cautiously Optimistic
Despite the ongoing turbulence, the market responded with cautious optimism. On April 23, shares of Eternal (formerly Zomato) were trading 0.74% higher at ₹239.2 on the Bombay Stock Exchange.
Analysts believe the leadership change could be seen as a proactive step rather than a reactive measure—especially since it places a seasoned and visionary leader at the forefront of decision-making. Goyal’s return to the food delivery cockpit may help Zomato speed up strategic execution and adapt to new consumer patterns.
What’s Next for Eternal?
With Deepinder Goyal back at the helm, all eyes are on what strategic shifts Zomato will make next. Will it focus more on subscription models to boost loyalty? Introduce AI-led personalization for better order prediction? Or double down on unit economics to push for profitability in a tough market?
One thing is certain: the coming months will be pivotal for Zomato’s food delivery narrative. In a space where margins are tight and consumer habits change quickly, bold leadership might just be the secret sauce.
Credits: CNBC TV 18
Conclusion: A New Chapter in Eternal’s Playbook
Zomato’s latest leadership shift marks more than just a change in titles—it’s a signal of renewed focus and strategic recalibration at a time when the food delivery landscape is evolving rapidly. With founder Deepinder Goyal stepping in to lead the charge, Eternal is clearly betting on experience, agility, and vision to navigate through headwinds and stay ahead of the curve.
As market dynamics continue to shift, this move could very well define the next chapter in Zomato’s journey—not just as a food delivery platform, but as a tech-driven, consumer-first brand shaping the future of how India eats.
