Deepinder Goyal remembers Zomato's hesitant entry into the food delivery market
Zomato Founder Deepinder Goyal Says He Initially Doubted Food Delivery Model Pioneered by Swiggy
Deepinder Goyal, founder and CEO of Eternal, the parent company of Zomato and Blinkit, has said he initially resisted entering last-mile food delivery, a model pioneered by rival Swiggy, due to concerns over its economic viability. Goyal said Zomato adopted the approach only after consumer demand made the shift unavoidable.
Speaking on the Raj Shamani podcast, Goyal explained that Swiggy was the first to introduce last-mile logistics in India’s food delivery market, a move he dismissed for several years. “Swiggy started last-mile logistics in food delivery. For a couple of years, I was resisting it, thinking this model can never make money, because the economics were off,” he said.
According to Goyal, growing customer preference ultimately forced Zomato to adapt. He shared that personal feedback made the challenge clear. “When your own friends tell you they’re not using Zomato anymore and switching to Swiggy, you know you have a problem on your hands,” he said.
Goyal also recalled how Swiggy extended its rivalry with Zomato to Shark Tank India, where it allegedly tied its sponsorship to his removal as a judge. “I told the producers to get a lot of money out of them,” Goyal said with a laugh. However, he added that he would not have taken such an approach himself. “If I were in their place, I wouldn’t do it. I would be more graceful than that. You don’t need to fight there,” he said.
On Zepto and Quick Commerce
Commenting on quick commerce and Blinkit rival Zepto, Goyal said Zepto is just one of several players in a rapidly growing market and that Zomato does not obsess over competitors. He clarified that his earlier comments suggesting Zepto was burning around ₹2,500 crore per quarter were misinterpreted. The remarks had drawn a sharp response from Zepto cofounder Aadit Palicha, who had called the claims “verifiably untrue.”
Leadership and Blinkit Acquisition
Goyal also offered insights into his leadership style and decision-making after Zomato acquired Blinkit. He revealed that he once considered asking Albinder Dhindsa, founder and CEO of Blinkit, to step down shortly after the acquisition.
“I put people at rock bottom. Their self-confidence goes for a toss. I do this with people who I think have insane potential, but something in their head is coming in their way,” Goyal said. He added that four out of five leaders recover and grow stronger from the process. “I even did this with Albi. Right after we acquired Blinkit, I asked him to leave, telling him he wouldn’t be able to cut it,” he said, noting that Dhindsa agreed with the assessment at the time.
The remarks provide a rare look into Goyal’s strategic thinking, competitive rivalry with Swiggy, and his approach to leadership during Zomato’s expansion into food delivery and quick commerce.