Zomato reports losses of Rs 346 crore, exits from 225 cities

The unexpected slowdown in demand has affected the growth of food delivery profits according to the company’s Q3 report

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Zomato has revealed that it has discontinued its services in 225 smaller cities due to poor performance. During its Q3 financial report, the food delivery tech firm also incurred losses of Rs 346.6 crore, primarily due to the decline in its food delivery operations.

Reportedly, in its Q3 report, the company stated, “The unexpected slowdown in demand has affected the growth of food delivery profits. Nevertheless, we believe that we are well positioned to achieve our profitability target.” It is not specified which cities have been affected by this decision, however, the company is trying to improve its profitability.

According to the latest report, Zomato saw a revenue increase of 75 percent to Rs 1948 crore in the October to December quarters. However, the losses also rose five-fold. Additionally, the report states that the gross order value from the 225 small cities was only 0.3 percent.

Recently, Zomato has restarted its Gold Membership subscription as a strategy to boost its business. It has been reported that the company already has over 900,000 subscribers for the membership program. The company is optimistic that the revival of this service will increase the usage and commitment of users to the app.

Moreover, Deepinder Goyal, CEO, Zomato, also posted on LinkedIn that several positions, including chief of staff to the CEO, growth manager, generalist, software development engineer, and product owner, are available for employment. However, he emphasised a strict requirement for these jobs, stating that there will be no work-life balance and that employees will need to be available to work around the clock, 24 hours a day and 7 days a week, for the company.

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