Zomato’s CEO States ‘Pure Veg Fleet’ Will Stop If Adverse Social Effects Arise

Zomato, a prominent player in the food technology industry, made headlines on Tuesday (March 19) with the announcement of its latest endeavor: the introduction of a ‘Pure Veg Fleet’ aimed at serving customers who adhere to a strict vegetarian diet. However, this move sparked a wave of criticism from users on social media platforms.

Related: Rajat Luthra, Previously the CEO of KFC India Becomes the CEO at Third Wave Coffee

Following the uproar surrounding this decision, Deepinder Goyal, the CEO and cofounder of Zomato, addressed the situation by expressing the company’s willingness to reconsider the initiative if it leads to any significant negative social impact.

“We recognize the importance of our role in society, especially in light of this change, and we are committed to addressing any issues that may arise. I want to assure you that if we observe any substantial adverse effects on social media due to this change, we will swiftly revert it,” stated Goyal in a message shared on platform X.

However, he stood by the recent launch, explaining that sometimes, the aroma and spills from non-vegetarian meals could transfer into vegetarian orders, prompting the necessity to keep the fleets separate.

“But why go through the trouble of separating the fleets? Well, despite everyone’s best efforts, there are instances where food ends up spilling into the delivery boxes. In such cases, the smell of the previous order can travel to the next one, potentially altering its aroma. That’s why we made the decision to have separate fleets for vegetarian orders,” Goyal elaborated.

Reassuring customers that the new launch strictly adheres to dietary preferences, the CEO of Zomato emphasized that the new fleet wouldn’t show bias based on the delivery partner’s dietary choices.

Furthermore, he pledged to remain vigilant and collaborate with resident welfare associations (RWAs) to address situations where societies are hesitant to allow the startup’s regular fleet.

Goyal posted on social media following the controversy surrounding Zomato’s decision to separate their fleets. Many supported the move, but others raised concerns. One user pointed out that segregating veg and non-veg deliveries may not solve the issue of food spilling into boxes. They questioned whether non-vegetarians would be happy with their food smelling like something else, and why only vegetarians would be considered victims of food-spilling.

Another user of X stated, “Currently, my family and I can confidently use Zomato without any hesitation. Believe me, I had never placed an order with Zomato or Swiggy before due to the concern of mixing vegetarian and non-vegetarian food. I cannot consume food that has come in contact with non-vegetarian items. Never.”

Earlier today, the company announced its plan to introduce additional specialized fleets to cater to special customer requirements. This includes a special cake delivery fleet equipped with hydraulic balancers to ensure that cakes are delivered without getting smudged.

These developments come after Goyal emphasized the importance of constant innovation for startups. He mentioned that in today’s fast-paced technological landscape, no business model can sustain for more than a decade without innovation.

In the third quarter of FY24, Zomato announced a profit after tax (PAT) of INR 138 Cr, an increase from INR 36 Cr in the previous quarter. Recently, Jefferies named Zomato as one of its ‘top picks’ for the next five years and predicted the stock to reach INR 400 during this timeframe.

In response to criticism over Zomato’s ‘Pure Veg Fleet,’ CEO Deepinder Goyal assured to monitor social impact, emphasizing the necessity to separate veg and non-veg deliveries due to aroma transfer concerns. Despite backlash, many supported the move. The company reaffirmed dedication to dietary preferences and revealed plans for specialized fleets, like a cake delivery fleet. Goyal stressed the startup’s commitment to constant innovation for sustainability. Zomato’s financial success, with a notable rise in profit, has positioned it favorably in the market, notably being recognized as a top stock pick for the future.