Several days after Zomato announced its plans to introduce a ‘pure veg fleet,’ sparking controversy online, the foodtech giant’s co-founder and CEO, Deepinder Goyal, expressed surprise at the negative response. He clarified that the decision was made based on survey results.
“We conducted an extensive survey among individuals aged over 50. A significant majority expressed a need for a vegetarian-only option and a preference for vegetarian restaurants… So, we proceeded with the launch. We hadn’t anticipated such a strong reaction… It was only after the launch that we realized, ‘Oh! This could also happen,'” Goyal explained to the Economic Times during an interview.
The Zomato cofounder stated that the survey involved 1,600 participants, with an impressive 72% expressing support for “veg only” deliveries.
Goyal also mentioned that approximately 80% of the responses to the introduction of their green fleet were favorable, with the remaining 20% being negative.
Earlier this month, Zomato revealed its ‘Pure Veg Fleet’ adorned in green uniforms, targeting customers with a ‘100% vegetarian dietary preference’. Additionally, it introduced a ‘Pure Veg Mode’, enabling users to filter out all restaurants serving non-vegetarian food items.
Continue Exploring: Zomato launches dedicated services for vegetarian customers with exclusive ‘Pure Veg Fleet’ and ‘Pure Veg Mode
The initiative sparked controversy online, with many users questioning the implementation of a fleet with distinct uniforms. Concerns were raised regarding the possibility that various resident welfare associations (RWAs) might enforce a complete ban on Zomato delivery partners not wearing the green-colored uniform.
The company ultimately reversed its decision to introduce a green uniform for delivery partners.
“We will maintain a fleet for vegetarians, but we’ve opted to eliminate the on-ground segregation of this fleet by using the color green. Both our regular fleet and our vegetarian fleet riders will now wear the color red,” Goyal explained at the time.
Continue Exploring: Zomato reverts to red uniforms for all riders amidst social media backlash over ‘Pure Veg Mode
In the meantime, the foodtech giant remains highly favored by retail investors, with its stock consistently reaching new highs on the stock exchanges. Zomato shares surged to an unprecedented level of INR 188.95 on the BSE during Wednesday’s intraday trading (March 27). Nevertheless, the stock relinquished these gains, ending the session 1.7% lower at INR 179.50 on the BSE.
Brokerage ICICI Securities increased Zomato’s price target (PT) to INR 300, noting the company’s steady growth trajectory and projected increase in profitability in the near future.
Continue Exploring: ICICI Securities raises Zomato’s price target to INR 300, citing strong growth and profitability metrics