Customers will not order online grocery delivery for next few days on online food delivery service provider Zomato.
Zomato is discontinuing grocery delivery service. On Sunday, company said that it has decided to shut down grocery delivery service from September 17.
Company also said it believes its investment in Grofers (a grocery delivery service company) will lead to better results for its shareholders than a grocery delivery service on its platform.
Company said in an email to its grocery partners, “Zomato believes in providing best services to its customers and giving its business partners greatest growth opportunities. We do not think current model is best way to deliver such benefits to our customers and business partners. Therefore, we intend to discontinue our pilot delivery service of groceries from September 17, 2021.”
Zomato will now focus on investing in grofers rather than running business model of in-house grocery delivery. Grofers also has a large grocery delivery market, and company focuses on this segment.
Since Zomato did not have expected success with in-house delivery, it is shutting down service.
Let me tell you that Zomato provided this service at a few select locations, and under this service, customers placed their orders within 45 minutes.
In July, company launched a grocery delivery service under Marketplace model, allowing customers to order goods online from nearby stores.
Apart from Zomato, another online food delivery platform company Swiggy provides an online grocery delivery service.
At same time, another platform is Danzo, which is popular in this segment.
Both these platforms deliver in 15-20 minutes. Their business model is also different as they manage their own warehousing etc.
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(Except for the title, this story has not been edited by DorcomDelections staff and is published from a syndicated feed.)