Zomato to cease operation of online grocery delivery
By MYBRANDBOOK
Zomato has pulled the plug on its grocery delivery service due to gaps in order fulfillment, poor customer experience and increasing competition from rivals that are promising express delivery in 15 minutes. The company said its investment in Grofers will generate better outcomes than its in-house grocery effort.
According to a Zomato spokesperson, "We have decided to shut down our grocery pilot and as of now, have no plans to run any other form of grocery delivery on our platform. Grofers has found high quality product market fit in 10 minute grocery stores and we believe our investment in the company will generate better outcomes for our shareholders than our in-house grocery effort."
The mail, sent on September 11, 2021, by Zomato to its grocery partners said it intends to stop its pilot grocery delivery service effective September 17. The company had started its grocery service pilot across a few select markets. The service offered grocery delivery within 45 minutes to its customers.
Zomato had forayed into the grocery delivery service in July through a marketplace model where it enabled its customers to shop from their neighbourhood stores. Its rivals such as Swiggy, Dunzo, however, have a different model, where they set up dedicated dark stores to service grocery orders within 15-30 minutes. Grofers, in which Zomato has a 10 percent stake, also promises grocery delivery in 10 minutes.
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