Zomato shuts shops in 225 cities

After reporting losses worth Rs. 346.6 crore for October-December 2022, Zomato wound up its services in 225 small cities claiming the performance was ‘not every encouraging’.

“The current slowdown in demand was unexpected, which is impacting the growth in food delivery profits. Despite that, we think we are in a good position to meet our profitability goal,” the company said in its Q3 report.

The company said in its financial earnings report that it exited “225 smaller cities in January, which contributed 0.3% of its gross order value in the December quarter.”

Without naming the cities, it said, “Performance of these cities was not very encouraging in the past few quarters, and we did not feel the payback period on our investments in these cities was acceptable.”