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If you are also used to ordering food from Zomato, then there is no good news for you. Taking a shocking decision, online food delivery company Zomato has closed its business in 225 cities. The company has announced that it has exited these cities by closing its operations in 225 smaller cities. The company cited the company’s poor performance as the main reason behind the decision. According to the company, the situation regarding online food ordering in some smaller cities was not encouraging. After which this decision has been taken.
Zomato has declared the results of the third quarter of the year only last week. The data shows that the losses of the company have increased. The company has incurred a loss of Rs 346.6 crore in the December quarter. Due to this, the company had a loss of 251 crores in the last quarter and 63 crores in the same period a year ago. The company suffered this loss due to the decline in the food delivery business.
Let us tell you that companies like Swiggy and Zomato are dominating the food delivery market in the Indian market. At the time of Corona, these companies had received huge orders. Due to which companies had spread their business in small towns. But the company has been facing losses for some time. The company has recently relaunched its Gold subscription to boost its profits.
While the company recently announced 800 new job openings, the decision to exit 225 cities is indeed shocking. Speaking about the decision, the company said, “The performance of these cities over the last few quarters was not very encouraging. We do not feel that the payback period of our investments in these cities was acceptable.
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