Zomato to shut its grocery delivery service from September 17

Zomato has reportedly announced to cease operations of its grocery delivery services from September 17 owing to gaps in satisfying the orders, which is resulting in below par customer experience. Instead of investing in its in-house grocery efforts, the company is confident that its investment in Grofers will produce better outcomes for its shareholders.

As per credible reports, the company soon wishes to cease operations of its pilot grocery delivery service as it believes that the existing model is not offering optimal service to its consumers.

Zomato believes in bringing the largest growth opportunities to its merchant collaborators and the best services to its consumers. However, the existing model was not the best medium of delivering services. The online delivery platform found it difficult to offer a satisfying consumer experience with dynamic store catalogs and changing inventory levels.

A spokesperson from Zomato also conceded that that company wished to termite its grocery delivery service and currently has no plan to operate any other type of grocery delivery on its platform.

Meanwhile, Grofers commits to delivering groceries in 10 minutes. Therefore, Zomato thinks that its investment in Grofers will help produce better business results. Zomato has reportedly invested USD 100 million in the company, which is valued at approximately Rs. 735 crores.

Two months ago, Akshant Goyal, the Chief Financial Officer of Zomato, approved the plan of online grocery and quoted that it is on a path of rapid growth, not only in India but across the globe and was a huge opportunity.

Zomato unveiled the trial grocery delivery service in July 2021, promising consumers grocery deliveries in 45 minutes.

For the record, Zomato is an India-based multinational food delivery and restaurant aggregator company founded by Pankaj Chaddah, Gunjan Patidar, and Deepinder Goyal in 2008. The company offers information, user reviews, and menus of restaurants along with food delivery alternatives from partner restaurants.

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