Zomato, a food-delivery and restaurant discovery network, announced its withdrawal from around 225 smaller cities last month in its December quarter results report.
“Recently, in the month of January, we have exited around 225 smaller cities which contributed 0.3 per cent of our GOV (gross order value) in Q3FY23 (October-December),” Zomato chief financial officer Akshant Goyal said in the company’s shareholders letter.
The food ordering and delivery firm, Zomato was present in over 1,000 cities, according to It’s annual report for 2021-22, which was issued in August last year.
“Performance of these (225) cities was not very encouraging in the past few quarters and we did not feel the payback period on our investments in these cities was acceptable,” he added.
However, on the post-earnings analysts call, replying to an inquiry on whether withdrawing from these cities had any influence on the company’s costs, Goyal said: “Not really materiel”.
The Gurugram-based firm announced on Thursday that its consolidated sales increased 75 per cent to Rs 1,948 crore in the October-December quarter, but its loss increased fivefold to Rs 346 crore. This includes figures for its Blinkit quick-commerce company and Hyperpure business-to-business division.
The company’s adjusted meal delivery revenue for the three-month period ending December 31 increased by 30 per cent year on year but decreased sequentially.
Zomato’s adjusted revenue for meal delivery was Rs 1,565 crore in the December quarter, compared to Rs 1,581 crore in the September quarter and Rs 1,200 crore in the December 2021 quarter. The company defines adjusted revenue for the food business as revenue from operations plus customer delivery charges as reported in the financials.