Sluggish demand, gig worker churn, q-comm competition behind slowdown in food delivery, says Deepinder Goyal

Deepinder Goyal, CEO of Zomato parent Eternal on Thursday listed three key reasons behind a slowdown in food delivery – the company’s biggest revenue and profit generator. He said that sluggish demand environment, a temporary shortage of delivery workers due to high demand for gig workers in quick commerce, and competition from rapid delivery of packaged food in quick commerce are leading to a drop in demand from restaurants.

For the January-March period, Zomato, which is Eternal’s food delivery business, reported a 16% year-on-year rise in…