HomeCURRENT AFFAIRSBUSINESSZomato Will Not Deliver Grocery Item, Know Reason

Zomato Will Not Deliver Grocery Item, Know Reason

Online food delivery service company Zomato has decided to shut down its delivery service of groceries from September 17. The company has taken this decision keeping in mind the delay in fulfillment of orders, weak customer experience and increasing competition. Competitors are taking 15 minutes in the delivery business where the company is lagging.

The company said that if it invests in Grofer, then its result will be better. In such a situation, he has decided to withdraw from his own grocery delivery business. In an email to its grocery partners, the company said, “Zomato believes in providing the best services to its customers and the biggest growth opportunities for its business partners. We do not think that the current model is the best way to pass on such benefits to our customers and business partners. Therefore, we want to discontinue our pilot delivery service of groceries with effect from September 17, 2021.

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A spokesperson for Zomato said that we have decided to discontinue the grocery delivery pilot project. There is no plan to start any kind of grocery delivery business on its platform now. Grofers is performing very well in this market, which is providing the service of delivery in 10 minutes. In such a situation, our investment in this company will be a better option for the shareholders of the company.

Zomato started grocery delivery in some cities on a pilot basis. The company was delivering grocery within 45 minutes, which is much higher than its competitor. The company started this service in July 2021. Zomato has also invested in Grofers. He has 10 percent stake in the company.

Due to Corona, there has been a huge boom in the online grocery delivery business in India. Customers are now accepting the superfast delivery service in which they are getting delivery within 15-30 minutes. Many companies are providing this service within 10 minutes. Companies like swiggy, Dunzo and Grofers are the front runners in this delivery business. According to a report by Reedseer, in the next 5 years, the business of quick delivery will increase by 10-15 times and this market will be about 5 billion dollars.

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