Zomato, a major player in food delivery technology, has stopped operating in 225 cities. Due to a slowdown in the food delivery industry, the company reported losses of Rs 346.6 crore for the quarter that ended in December.
Zomato noted that the food delivery tech company’s losses have increased in its third quarter financial earnings report. The business also disclosed that it has stopped doing business in 225 smaller cities because their performance was “not very encouraging.” Due to the decline in food delivery business, the company reported losses of Rs 346.6 crore for the quarter that ended in December.
“Unexpected demand slowdown at the moment is having an effect on the rise in food delivery profits. Nevertheless, we believe we are in a strong position to achieve our profitability goal “the business reported in its Q3 report.
In an effort to increase profits, Zomato, one of the most popular food delivery apps in India, recently relaunched its Gold subscription. The business decided to leave 225 small towns at a time when it was planning to fill about 800 positions with new employees.
In 225 small cities, Zomato won’t be available any longer.
Zomato, a food delivery service, left “225 smaller cities in January, contributing 0.3% of its gross order value in the December quarter,” the company noted in its financial earnings report.
The company explained the decision by stating that “the performance of these cities in the past few quarters was not very encouraging, and we did not feel the payback period on our investments in these cities was acceptable.”
The precise cities affected by this change are unknown, though. The business also discussed the steps it is taking to increase profits. The Gold subscription was recently relaunched in India. Speaking of the same, it stated: “In the latter part of January, we introduced Zomato Gold, a brand-new membership service. Going forward, we anticipate that this programme will increase customer loyalty and ordering frequency.” More than 9 lakh members, according to the company, have signed up for the programme.
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