Zomato has stated that, as a result of poor performance, company has stopped offering its services in 225 smaller cities. The food delivery tech company also experienced losses of Rs 346.6 crore during its Q3 financial report, mostly as a result of the decline in its food delivery business.
The company reportedly noted, “The unexpected slowdown in demand has affected the growth of food delivery profits,” in its Q3 report. “Nevertheless, we believe that we are well positioned to achieve our profitability target,” it added. Although it is unclear which cities have been impacted by this decision, the company is attempting to increase its profitability.
In the three months from October to December, Zomato’s revenue increased by 75% to Rs 1948 crore, according to the latest report. But losses also rose five-fold. The report also states that only 0.3% of the total order value came from the 225 small cities.
As a strategy to grow its business, Zomato just restarted its Gold Membership subscription. According to reports, the company’s membership programme already has more than 900,000 subscribers. The company is confident that the return of this service will improve user engagement and app usage.
Additionally, the CEO of Zomato, Deepinder Goyal, announced on LinkedIn that various positions, including chief of staff to the CEO, growth manager, generalist, software development engineer, and product owner, are open for hiring.
However, he emphasised a strict requirement for these positions, stressing that there will be no work-life balance and that employees will need to be prepared to work day in and day out for the company, 24 hours a day, 7 days a week.