Zomato closed service in more than 200 cities

Zomato, which provides food delivery service through the app, has stopped its service in about 225 cities last month. The company has given this information in the December quarter results. Zomato has told that this decision has been taken due to the low number of orders in these cities for the last few quarters.

The company has said in a letter sent to shareholders, “There is a slowdown in the food delivery business since October last year. This trend is being seen across the country. Due to this, the growth in Zomato’s GOV in the third quarter was only 0.7 percent. However, there has been a growth of 21 per cent in GOV on a year-on-year basis.” GOV is the total value of all discounts excluding taxes, customer delivery charges, tip. This value was Rs 6,680 crore in the December quarter of the company.

Earlier this month, Zomato reported results for the October-December period that its consolidated revenue grew by nearly 75 per cent to Rs 1,948 crore. However, the loss of the company widened to Rs 346 crore. This includes figures from the company’s units Blinkit and Hyperpure. The company’s adjusted revenue from food delivery grew nearly 30 percent in the December quarter on a year-on-year basis. However, it has declined on a year-on-year basis.

e-commerce company at the end of last year last month Amazon had decided to stop its food delivery in the country. company in this business Swiggy And Zomato was getting tough competition. Earlier, Amazon had also shut down its EdTech unit. The company had informed its restaurant partners to discontinue the service from December 29. This unit of the company is called Amazon Food. The restaurant partners were assured to clear payments and other contractual obligations by December 29. The letter sent by the company said that restaurant partners will continue to have access to the company’s tools and reports until the end of January. To compete with Swiggy and Zomato in the country, Amazon Food was started from Bengaluru and later expanded.