Zomato has come a long way from its humble beginnings, but it hasn’t always been smooth sailing. In an exclusive interview with Moneycontrol, CEO and founder Deepinder Goyal reflected on the challenges Zomato faced during the pandemic, the resilience of the company, and his vision for the future of food delivery, particularly how 10-minute deliveries could revolutionize the industry.
Zomato’s Deepinder Goyal Discusses the Future of Food Delivery and 10-Minute Deliveries as the Next Big Gamechanger
Zomato’s Struggles During the Pandemic
March 2020 marked one of the most difficult periods in Zomato’s 16-year history. As the Covid-19 pandemic swept across the globe, India imposed a strict nationwide lockdown that crippled businesses. Zomato was hit hard, losing nearly 90% of its revenue overnight. With only enough funds to survive for two more months, the company found itself in a precarious situation.
In a state of panic, Deepinder Goyal sought $5 million from investors to save his company. To his dismay, the investors declined, prompting Goyal to search for a more sustainable solution. One of his earliest backers, InfoEdge founder Sanjeev Bikhchandani, advised him to think long-term rather than relying on a short-term cash injection.
How Zomato Bounced Back
Rather than giving up, Goyal and his team made some tough decisions to cut costs and strategize for the future. Within a few months, Zomato was back on its feet, clawing its way to recovery. The company’s turning point came with a successful IPO in 2021, where Zomato raised over a billion dollars. This not only secured the company’s future but also laid the foundation for its next phase of growth.
Since then, Zomato has expanded far beyond food delivery, venturing into new verticals like quick commerce through its acquisition of Blinkit, B2B sourcing via Hyperpure, and the events space with District. These new ventures have created additional growth engines for the company, further widening the gap between Zomato and its nearest competitor, Swiggy.
Zomato’s stock has been on a remarkable rise, with its market capitalization nearing $30 billion in recent weeks. Despite this impressive success, Goyal remains humble. “We just stuck to our jobs and continued moving forward day by day. I can’t see anything special we have done, to be very honest,” Goyal remarked during the interview.
10-Minute Deliveries: A Potential Gamechanger
One of the hottest topics in the food delivery space today is the rise of quick commerce, particularly 10-minute deliveries. Goyal believes that this rapid delivery model has the potential to completely transform how people order food and groceries.
“Quick commerce is food delivery’s new frontier,” said Goyal. By delivering essential items in under 10 minutes, Zomato aims to provide unparalleled convenience to customers, especially in today’s fast-paced world. This innovative approach will not only improve customer satisfaction but also give Zomato a competitive edge over its rivals.
Goyal acknowledged that implementing a 10-minute delivery system comes with its own set of challenges, including logistics and maintaining product quality. However, he remains optimistic that Zomato can fine-tune the model to deliver value to both consumers and stakeholders.
Leadership and Decision-Making: A Day-by-Day Approach
When asked about his leadership style, Goyal’s response was refreshingly straightforward. Unlike many corporate leaders who rely on elaborate strategies and playbooks, Goyal admitted that he takes things “day by day” and often trusts his gut when it comes to making decisions about new products and offerings.
“We are always late to the party,” he added, pointing out that Zomato tends to enter markets or launch new products after other competitors have already paved the way. However, the company has proven time and again that being a latecomer doesn’t necessarily mean losing out—Zomato has consistently managed to outpace its competition by perfecting its execution.
Navigating the Public Markets and Swiggy’s Upcoming IPO
Zomato’s successful IPO was a major milestone, but according to Goyal, navigating the public markets has been surprisingly easier than anticipated. “It’s more predictable,” he shared, explaining that public markets provide more clarity and structure compared to the unpredictable nature of private funding.
As for Swiggy’s upcoming IPO, Goyal remains unfazed. Rather than worrying about what his competitors are doing, he prefers to focus on building Zomato’s future and continuing to innovate. “We just keep doing our thing,” he stated simply.
Conclusion
In an industry as dynamic as food delivery, Deepinder Goyal continues to lead Zomato with a clear vision and a grounded approach. From bouncing back from the brink of collapse during the pandemic to pushing the boundaries of quick commerce with 10-minute deliveries, Zomato is shaping the future of food delivery in India and beyond.
As competition with Swiggy heats up and new market opportunities arise, one thing is clear: Zomato’s journey is far from over, and with Goyal at the helm, the company is poised for even greater success in the years to come.
