Rakesh Ranjan has stepped down as CEO of Eternal’s (formerly Zomato) food delivery business after approximately two years.

This decision is part of an ongoing internal reshuffle at the company, as reported by the Economic Times.

Ranjan will continue to work at Eternal in a different role.

Until a permanent replacement is appointed, Deepinder Goyal, the founder and CEO of Eternal, will oversee the food delivery segment.

The company is considering both internal and external candidates for the position, with a decision expected in the coming months.

His exit follows other recent senior-level departures and layoffs of 600 customer support staff due to automation and rising competition.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ Leadership changes often signal strategic pivots during market challenges

Ranjan’s exit follows a pattern common in tech companies when core business models face headwinds, with Eternal experiencing multiple senior departures while its food delivery growth slowed to 17% (below expectations).

This leadership transition aligns with broader industry trends where organizations adapt from rigid structures to more dynamic approaches when facing market shifts. McKinsey research indicates that fast-moving organizations report significantly higher resilience during periods of change 1.

The timing is notable as Eternal faces what Ranjan himself described as a “broad-based slowdown in demand” in the food delivery business, suggesting the company may be repositioning leadership to navigate this challenging period.

Executive reshuffles during growth deceleration periods often aim to bring fresh perspectives, with research showing that 70% of organizational change initiatives fail without proper leadership transition strategies 2.

The decision to have CEO Deepinder Goyal temporarily oversee food delivery highlights the critical importance of this segment to Eternal’s overall business, despite its slowing growth relative to newer verticals like quick commerce.

2️⃣ Food delivery companies pivot to automation amid profitability pressures

Eternal’s recent layoff of 600 customer support employees due to “AI-driven automation” reflects a broader industry shift toward technology as margins tighten in the maturing food delivery market.