Earlier this year, food delivery platform Zomato announced their entry into grocery delivery market. They partnered with retailers and promised doorstep grocery delivery within 45 minutes. In just a few months, the company has realized that this was a big mistake. So they have decided to scrap this operation instead of continuing to make a loss. The company announced that they are shutting down the grocery delivery service after Sep 17 this year.
The company finds itself unable to keep the promise of delivery in 45 minutes. This is impacting customer service and company reputation. The company is now calling its grocery delivery operation ‘a pilot’ and have decided to shut it down. It is also being reported that Zomato is diverting its funds to Grophers. The company continues to believe in online grocery shopping. But instead of getting into delivery themselves, they have decided to invest in Grophers, hoping for better outcomes for all the stakeholders.