Zomato gave clarification on stopping the 10- minute service on Friday.
“Zomato stops 10-minute food delivery offering” which appeared in http://www.rediff.com on January 24, 2023. “In this regard, we would like to submit that the said news article itself clarifies Company’s stance,” the company said in its regulatory filing.
“Instant (10-minute food delivery offering) is not shutting down. We are working on a new menu with our partners and rebranding the business. All finishing stations remain intact, and no people are impacted by this decision,” the company added.
Thus, no negotiations were required for this purpose, the statement read.
Zomato Instant was introduced as a test in Gurugram in March 2022 to fulfil rising consumer demand for faster delivery, and it was then expanded to Bengaluru. The firm hoped to do this by utilising “finishing stations,” which held 20-30 of the most commonly requested meals in a certain location.
Rahul Ganjoo, head of new ventures, applied in November last year, followed by Siddharth Jhawar, head of intercity legends, the company’s inter-state delivery service.
During the same month, the food aggregator also stopped offering meal delivery through its app in the UAE and laid off 3 per cent of its 3,800-person workforce as part of a cost-cutting effort.
Zomato, on the other hand, was able to reduce its losses to Rs 251 crore during the July-September quarter. This compared to Rs 429.6 crore in the same time the previous fiscal year. Revenue for the company climbed by 62.2 percent to Rs 1,661 crore from Rs 1,024 crore the previous year.