Eternal, formerly known as Zomato, told exchanges on Thursday that its food delivery CEO Rakesh Ranjan has not resigned and is still part of the leadership ship.
ET had reported on Wednesday about Ranjan stepping down as the chief executive of Zomato, the food delivery business of Eternal, and founder Deepinder Goyal taking over till a permanent replacement is appointed. A few internal and external names were being considered for the role, said people in the know.
"We would like to clarify as on date, there has been no resignation tendered by Rakesh Ranjan and he still continues to be part of the leadership team. At Eternal Group, internal reshuffling of the leadership team is considered a standard practice as part of the company's ongoing efforts to optimize organizational effectiveness," Eternal said in the filing.
The leadership rejig at the leading food aggregator comes amid a broader slowdown in the food delivery sector. Even during the festive-heavy December quarter — typically a strong period for consumption — Zomato’s food delivery growth was muted, falling short of market expectations. Gross order value (GOV) rose just 2% sequentially to Rs 9,913 crore, although it was up 17% year-on-year.
As of the three months ended December, Eternal’s biggest rival Swiggy had 43% market share in the food delivery segment, up from 42% in the preceding quarter. Analysts have flagged the possibility of Zomato ceding share as rivals scale up 10-minute food delivery offerings. The company also offers quick food delivery through its app and quick commerce platform Blinkit
ET had reported on Wednesday about Ranjan stepping down as the chief executive of Zomato, the food delivery business of Eternal, and founder Deepinder Goyal taking over till a permanent replacement is appointed. A few internal and external names were being considered for the role, said people in the know.
"We would like to clarify as on date, there has been no resignation tendered by Rakesh Ranjan and he still continues to be part of the leadership team. At Eternal Group, internal reshuffling of the leadership team is considered a standard practice as part of the company's ongoing efforts to optimize organizational effectiveness," Eternal said in the filing.
The leadership rejig at the leading food aggregator comes amid a broader slowdown in the food delivery sector. Even during the festive-heavy December quarter — typically a strong period for consumption — Zomato’s food delivery growth was muted, falling short of market expectations. Gross order value (GOV) rose just 2% sequentially to Rs 9,913 crore, although it was up 17% year-on-year.
As of the three months ended December, Eternal’s biggest rival Swiggy had 43% market share in the food delivery segment, up from 42% in the preceding quarter. Analysts have flagged the possibility of Zomato ceding share as rivals scale up 10-minute food delivery offerings. The company also offers quick food delivery through its app and quick commerce platform Blinkit