Zomato is on thoughts to close down its Zomato Market, which was recently launched. Zomato Market provides grocery service in more than 80 cities in India.
It has come as a surprise that they wish to close this vertical grocery services, but sources say that they were losing out on money in every delivery they made.
The company had launched Zomato Market as a counter-attack against its rival Swiggy that has been delivering groceries for the past one year. Moreover, Zomato had also been hit by the pandemic and was experiencing heavy losses. In just two months the company’s deliveries went down by 70% – 80%. Expanding their services to deliver groceries also was a plan to bring in some additional income.
Zomato’s answer to downscaling their business was that they would continue to service users that are in need of essentials. However, once the Unlock 1.0 is imposed and relaxations are resumed in the nation, they will concentrate on resuming food delivery services.
Conclusion:
On the verge of a pandemic, it was a relief to get groceries delivered at your door-step. Thousands of users across India would definitely miss the services of Zomato Market.(Ref)
