Foodtech giant Zomato announced on Tuesday the launch of its ‘Pure Veg Fleet’ to cater to customers with a ‘100% vegetarian dietary preference’. However, the move faced backlash from social media users.
After a row over the company’s decision, Zomato cofounder and CEO Deepinder Goyal stated that the foodtech major is open to rolling back the new initiative if significant negative social repercussions arise.
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“We understand our social responsibility due to this change, and we will not back down from solving it when the need arises. And I promise, that if we see any significant negative social repercussions of this change, we will roll it back in a heartbeat,” Goyal said in a post on X.
Nevertheless, he justified the recent launch by explaining that occasionally, food spills and odors from non-vegetarian orders can permeate vegetarian ones. He argued that this circumstance underscores the necessity of segregating the fleet.
“But why did we need to separate the fleets? Because despite everyone’s best efforts, sometimes the food spills into the delivery boxes. In those cases, the smell of the previous order travels to the next order, and may lead to the next order smell of the previous order. For this reason, we had to separate the fleet for veg orders,” Goyal added.
Reassuring users about the new launch’s adherence to dietary preferences, the Zomato CEO emphasized that the fleet would not “discriminate based on our delivery partners’ dietary choices.”
Additionally, he mentioned that the company would remain vigilant and collaborate with Resident Welfare Associations (RWAs) to address situations where societies restrict access for the startup’s regular fleet.
Goyal’s recent social media update followed the uproar sparked by Zomato’s decision to separate its fleets online. While some praised the move, others criticized it.
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“If the problem statement is about food spilling into delivery boxes, how is segregating veg & non-veg delivery a solution? You think non-vegetarians are okay with their tandoori chicken smelling like smoked salmon? How are the victims of food-spilling exclusively vegetarians?” said a user on X.
Another X user said, “Literally now, me and my family can use Zomato without any doubt. Trust me I had never ordered from Zomato or Swiggy because of the veg and non-veg food mix issue. I just can’t eat the food if it is touched somehow with non vegetarian food. Never.”
The company additionally announced its intention to expand its range of specialized fleets tailored to meet specific customer requirements. This expansion includes the introduction of a dedicated cake delivery fleet equipped with hydraulic balancers, ensuring cakes remain pristine and unblemished throughout the delivery process.
The developments came just a day after Goyal’s remarks at the ongoing ‘Startup Mahakumbh’, underscoring the imperative for startups to embrace constant innovation. He emphasized that amidst the rapid evolution of technology, no business model can sustain relevance for more than a decade.
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The new experiment comes as Zomato continues to captivate retail investors, with its stock soaring over 180% in the past 12 months, fueled by three consecutive profitable quarters.
In Q3 FY24, Zomato posted a notable increase in its profit after tax (PAT), reaching INR 138 Cr compared to INR 36 Cr in the previous quarter. Additionally, Jefferies recently identified Zomato as one of its ‘top picks’ for the forthcoming five years, projecting a surge in the stock value to INR 400 within this timeframe.
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Zomato’s shares concluded yesterday’s trading on the BSE at INR 158, marking a 0.13% decrease.
