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Zomato to shut Grocery services from September 17

Zomato has been a loved Food Delivery service throughout the country despite having quite some competitors. It is a concept that has been proven to be hit in all aspects.

Zomato recently began its Grocery services in the month of July this year. And now, the Food Delivery service has decided to shut the grocery delivery services due to gaps in order fulfilment and the traction 15-minute grocery delivery has been getting in the recent past.

The announcement came on Saturday when Zomato wrote an email to its grocery store partners.

A Zomato spokesperson said, “We have decided to shut down our grocery pilot, and as of now, we have no plans to run any other form of grocery delivery on our platform. Grofers has found a 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 in-house grocery effort.”

In the mail, Zomato mentioned that the company believed in delivering the best services to its customers and the largest growth opportunities to their merchant partners. It also said that the current model run by Zomato did not fulfill their aims and wasn’t their best way to deliver services.

Zomato then made it clear that the company wanted to pull down its pilot grocery delivery service from September 17, 2021.

Adding in, the company also said in its mail that the store catalogues were dynamic and inventory levels kept changing which made it difficult for Zomato to provide a satisfying customer experience.

An acceptance statement from a Zomato spokesperson came in that said the company wanted to close its delivery services and does not plan to run any other form of grocery delivery on its platform.

Grofers, on the other hand, is a grocery delivery service in which Zomato has its stakes, and it promises delivery in 10 minutes. Seeing this equation, Zomato said that it believes that its investment in the company will help generate better outcomes for the shareholders. Zomato has said to have invested $100 million in Grofers, which is around Rs 735 crores.

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BRL Editor
BRL Editorhttps://businessreviewlive.com
Business Review Live covers finance, technology, travel, lifestyle, and everything in between through exclusive interviews and analysis, market statistics, digital video, and an expanded array of content formats.