‘Discounts are not very big, they only appear so,’ admits Zomato CEO Deepinder Goyal

Zomato CEO Deepinder Goyal has openly acknowledged a long-standing concern of customers regarding the transparency of discount offers on the platform. During a discussion with YouTuber Ranveer Allahbadia on his podcast 'The Ranveer Show,' Goyal was questioned about how Zomato can provide substantial discounts to its customers. Goyal candidly remarked, “The discounts are not very big, they only appear so.”

He went on to clarify that Zomato often presents offers like "50% off up to Rs 80," which, in reality, equates to a discount of only Rs 80, not a genuine 50% reduction. To illustrate, if an order amounts to Rs 400, this discount would only amount to 20%, as per Goyal's calculations.

Goyal acknowledged that this method of offering discounts can be misleading to customers and expressed a desire to rectify it. However, he pointed out that Zomato faces challenges in changing its approach while competitors continue to exaggerate their discount offerings.

Goyal stated, "I don't consider this type of discounting to be honest. Discounts should be straightforward and truthful. If you promise a discount to your customer, it should be an accurate representation, like Rs 80 off, rather than a vague '50% off up to Rs 80'."

He also added, "But if the competition persists in this practice, I may not have the ability to make changes."

In the course of the 45-minute conversation on The Ranveer Show, Goyal also shared insights about his amicable relationship with Sriharsha Majety, the co-founder and CEO of Swiggy, despite being business rivals. They consciously avoid discussing business matters when they encounter each other.

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