Zomato: Food-delivery platform Zomato has pulled out of around 225 small cities last month, the company said in its December-quarter earnings report. “Recently, in the month of January, we have exited ~225 smaller cities, which contributed 0.3% of our GOV in Q3FY23. The performance of these cities was not very good in the last few quarters” Zomato Chief Financial Officer Akshat Goyal said in the letter to the shareholder of the company.
According to Zomato’s annual report for 2021-22 released in August last year, the food ordering and delivery business was present in more than 1,000 cities.
This problem started after Diwali
“We have seen a slowdown in our business since late October (after Diwali festival). This slowdown has been observed across the country, but more so in the top 8 cities. Orders declined QoQ while AOV increased. YoY basis However, GOV saw order volume growth of 21% at 14% with a 6% increase in AOV,” Goyal said in the letter.
Earlier this week, the Gurugram-based company reported that its revenue rose 75% to Rs 1,948 crore in the October-December quarter, while its losses widened five-fold to Rs 346 crore. This includes numbers for its quick-commerce business Blinkit and business-to-business vertical HyperPure. On a year-over-year basis, the company’s adjusted food delivery revenue for the three-month period ended December 31 saw a 30% increase, but a decline on some grounds.
the worst may be over
In the letter to shareholders, Goyal said, “We are witnessing a recovery in demand in recent weeks, which gives us confidence that the worst may be behind us.”
Once again Zomato Gold launched in India
Zomato Gold: Online food delivery platform Zomato keeps coming up with some trick or the other to win over its users and this time Zomato has not come up with anything new but something that has been introduced before. Along with this, let us tell you that Zomato has relaunched its Zomato Gold loyalty program, which replaces the company’s Pro Plus membership. For the unaware, Zomato Pro Plus was officially discontinued in 2021.