Zomato CEO Deepinder Goyal in a recent conversation with YouTuber Ranveer Allahbadia revealed about the hidden story behind dishonest Zomato discounts on orders, when he was asked how the food delivery major manages to give seemingly huge discounts to buyers, order after order.
“‘Fifty per cent off up to Rs 80’ is not a discount of 50 per cent, it is only a discount of Rs 80. If there is an order for Rs 400, that is only a 20 per cent discount. I want to change it, I don’t call this discounting honest.”
“Discounting should be honest. If you are offering something to the customers, it should be honest. It should be Rs 80 off. It shouldn’t be 50 per cent off up to Rs 80. But if the competition continues like this, I will not be able to change it,” he admitted.
He further said that Zomato makes only Rs 5-10 profit per order, but after all the expenses it would come to a mere Rs 1 or 2.
He revealed that he never used Swiggy app to order food, but manages to learn about the app. Further, speaking about the food delivery app’s major competition, he said,”Swiggy has for ever been a real problem for us…Swiggy had once raised a billion dollars. We had almost nothing in our bank that time.”
The CEO told the food delivery app Zomato sold its UAE business and got $170 million from that deal. “We kept fighting, kept working hard. We knew we had only so much money, we have to reach a particular destination within a specific time,” he said while speaking about taking the company to newer heights.
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