Zomato CEO Deepinder Goyal Reveals Discounts May Not Be as Generous as They Seem
If you frequently use food delivery services like Zomato, you are likely aware of the significant discounts offered on the platform. On regular days, Zomato provides discounts ranging from 20 to 50 percent, which can go up to 60 percent during festivals and special events. These discounts often influence people’s choice of restaurant. However, Zomato CEO Deepinder Goyal has recently revealed that these discounts may not actually be as substantial as they seem.
Goyal recently appeared on YouTuber Ranveer Allahbadia’s podcast. The discussions covered things like company operations, work culture at Zomato, employee recruitment process, competition with Swiggy and much more. During the discussion, the CEO also discussed the lucrative discounts given by the company, which have a twist.
Zomato offers just ‘look’ big
Allahbadia praised Goyal for the big discounts the company regularly gives and asked him how the company manages to make a profit despite the offers. Goyal candidly said, “The discounts are not very big, they just seem like it,” according to a Moneycontrol report.
He also offered an explanation. When Zomato offers a percentage discount, it is usually topped up with a cash ceiling. For example, a 50 percent discount on Rs. 80. This effectively means that customers will get 50 percent discount on their order value up to Rs. 80. So, if your order is more than Rs. 160 and something like Rs. 500, you will not get Rs. 250 off but only Rs. 80.
He also admitted that such offers are not entirely honest and can be considered misleading. Goyal explained that he wants to move away from such fraudulent lures, but is unable to do so because of competitors who also use similar tactics.
“I don’t call this discount honest. Discounts should be honest. If you tell your customer something, it should be honest. It should be ₹80 off. It shouldn’t be 50% off to ₹80. But if the competition continues like this, I can’t change anything Goyal said.
