Rakesh Ranjan, Head of Zomato's Food Delivery Division, Resigns

According to a media report, Rakesh Ranjan, the CEO of Zomato's meal delivery company, will be leaving his current role. As per the published news, Deepinder Goyal, the creator and group CEO of Zomato, would oversee food delivery operations in the upcoming months.

 Rakesh Ranjan will undoubtedly stay with the company and not be leaving. According to the report, this was a component of the company's biannual leadership reorganisation.

As part of the company's continuous attempts to maximise organisational effectiveness, Zomato's spokeswoman said that internal reorganisation of the executive team is seen as a routine practice at Eternal Group.

Food Delivery Sector Witnessing a Meltdown

Although Zomato regularly restructures its leadership, the management shift coincides with a slowdown in the larger food delivery sector. According to Rakesh Ranjan, the food delivery industry is currently seeing a widespread downturn in demand that began in the second half of November.

 In his January 20 shareholder letter detailing the company's quarterly results, he made this announcement. Ranjan has worked at the Gurugram-based company for almost eight years, having been appointed CEO in June 2023.

 Zomato was already leading the market when Ranjan took over, but throughout the previous few months, it increased its advantage. However, the meal delivery industry is still developing since there is still no obvious leader, and Swiggy and Zomato's market shares fluctuate periodically.

Not just Zomato, the industry leader in meal delivery, is seeing a slowdown. In line with peers, Swiggy, its rival, has also experienced a downturn.

Major Changes in Leadership at Zomato

Zomato has made two significant leadership changes in its meal delivery company in the midst of a slower market and some market share erosion.

Rakesh Ranjan has been replaced as the unit's CEO by Deepinder Goyal, and earlier this month, Rinshul Chandra resigned as the chief operational officer (food delivery).

Delhi HC Notifies Zomato and CCI

As part of an ongoing antitrust probe against the foodtech giant, the Delhi High Court (HC) has sent notice to Zomato and the Competition Commission of India (CCI).

According to reports, the HC made the rulings at a hearing on a plea against the National Restaurant Association of India's (NRAI) exclusion from the confidential ring during the investigation. The HC was also urged by the NRAI to examine the company's confidentiality claims.

The confidential ring was first introduced in 2022 and gives parties access to private documents or information about other parties in an inquiry so they can better defend themselves.

The confidentiality ring aids regulators in quickly resolving complaints, subject to specific riders. Exclusion from the ring inhibits a petitioner’s capacity to make a defence.

It is important to remember that in October 2024, the competition watchdog removed the NRAI from the ring after it had been first included.

At the hearing on 21 April, Zomato's lawyer allegedly argued that the NRAI should not be included in the confidential ring because it included companies that are competitors of the foodtech juggernaut.