Zomato to Shut its Grocery Delivery Service? | Zomato Says ‘Current Model is not Best’

Zomato announce that it has stop its Grofers and would generate better results than the efforts in its grocery delivery services.

A representative for Zomato had Said :

“We have decided to shut down our grocery pilot and as of now, have no plans to run any other form of grocery delivery on our platform. Grofers has found high quality product market fit in 10-minute grocery and we believe our investment in the company will generate better outcomes for our shareholders than our grocery effort.”

Zomato had started its grocery service pilot in few markets to date and the service undertaking was offering grocery delivery within 45 minutes.

Zomato had enter in the grocery delivery market in July of this year.

This service allow the customers to shop for groceries to shop from their local stores that were partner up with Zomato through its platform.

This is different from the business models that the Swiggy and Dunzo run which revolves around dedicated dark stores in key locations in a select city which allows them to deliver groceries to their customers in a span of 15 to 30 minutes.

This should be note that Grofers, which Zomato has a 10% stake in had promise a 10-minute delivery.

Zomato believes will bear greater fruit in the long run as per the statement that was made.

Zomato had initially work on this service delivery area at a time when the Covid-19 pandemic was raging and grocery delivery was in high demand.

Delivery services such as the aforementioned Dunzo, Swiggy and Grofers are amongst the main leaders when it comes to rush-order grocery delivery to the customers’ doorstep.

This should also be note that this was not the company’s first jump into the grocery delivery business.

In 2020 when food delivery had seen its initial peaks due to the pandemic, Zomato had in fact tried its hand on this.


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