Zomato founder Deepinder Goyal has addressed growing concerns that artificial intelligence (AI) interfaces, particularly advanced chatbots, could fundamentally disrupt consumer internet businesses like his food delivery platform. In a recent shareholder letter, Goyal firmly stated that AI is an "enabler" and "our friend," not a competitive threat to established apps.
AI Won't Replace Specialized Apps for Complex Transactions
Goyal dismissed fears that AI chat interfaces would become the primary gateway for commerce, diverting demand away from specialized applications. He drew parallels to past attempts by major tech platforms, such as Google's decade-long effort to integrate transactional behavior directly into its search platform. "Google spent over a decade trying to pull transactional behaviour into its own platform… And yet Booking.com is still here. Expedia is still here. Amazon is still here," Goyal highlighted.
He argued that general-purpose AI interfaces are well-suited for broad queries but prove inadequate for what he termed "complex, high-frequency, habitual transactions." Ordering food, Goyal explained, is far from a simple interaction. It involves numerous steps: discovery of restaurants, comparison of options, potential substitutions, and real-time order tracking. These intricate processes, he noted, are areas where specialized apps continue to hold a significant advantage.
The Enduring Power of Consumer Habits and Brand Loyalty
A key pillar of Goyal's argument rests on the resilience of consumer behavior and deeply ingrained user habits. "Consumer behaviour is the hardest thing in the world to change," he wrote. He emphasized that frequent users, accustomed to the seamless experience of dedicated apps, are unlikely to "reroute those habits through a chat window." The established brand recall and user experience of platforms like Zomato create a significant barrier to disruption by new, less tailored interfaces.
AI as an Enabler for Market Expansion, Not Just Cost Savings
Instead of viewing AI as a direct competitor, Goyal positioned it as a powerful tool that strengthens Zomato's operational capabilities and expands its market reach. He revealed that Zomato is already extensively deploying AI across various facets of its business, including sophisticated demand prediction models, optimizing logistics, enhancing fraud detection, and improving overall customer experience.
Goyal stressed that the primary benefit of AI for Zomato isn't merely cost reduction. "The sharper question we ask ourselves is: how does AI expand the market?" he questioned. He believes AI can significantly lower barriers to participation across the entire ecosystem, benefiting customers, delivery partners, restaurants, and small businesses by simplifying processes like discovery, onboarding, and daily operations. While acknowledging the need to monitor developments in "agentic commerce," Goyal concluded, "At this point, we believe there is nothing to panic about."