Zomato: With the advancement of technology, people’s lifestyles are getting better. In the past, we used to get up early in the morning and cook, but not tiffin and lunch. Food delivery companies are now filling that gap. With time to spare, whenever you want, favorite foods are served in minutes. A prominent name in this segment is Zomato. While this company is serving in more than 1,000 cities, it shocked by stating that it has recently left some places.
From last month..
Food delivery company Zomato has announced that it has stopped its services in around 225 small cities. This was disclosed in the December quarter results report. Gross order value (GOV) in Q3 of this financial year has exited the region by 0.3 percent. She said that this decision came into effect from last month.
Not much effect:
Business in 225 cities has not been encouraging for the past few quarters. Akshant Goyal, Chief Financial Officer of Zomato, said that we are not getting the expected income on the investment. To the question of how much impact these measures will have on the company’s expenses, he replied that there will not be much impact
Nationwide slowdown:
Combined with subsidiaries Blinkit and Hyperpure, the consolidated revenue rose 75 percent to Rs 1,948 crore in the October-December quarter. But the loss increased 5 times to Rs.346 crores. The management of Zomato said that the reason for this is the slow business in the food delivery industry since last October. Although its effect is visible across the country, it is revealed that it is more in 8 cities.