Online food delivery platform Zomato has decided to scrap its grocery delivery service from September 17, as it does not have confidence that the current model is serving in a best way possible, to deliver services to their customers. The company has sent an email to its grocery partners, notifying them that the company wants to terminate its pilot grocery delivery service soon.
Zomato revealed that, ceasing the service is better, due to gaps in fulfilling the orders, which, in turn, is leading to poor customer experience. Instead, the company decides to improve its investment in Grofers, which will help generate better outcomes for its stakeholders, than putting in efforts into its in-house grocery services.
‘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 and we believe our investment in the company will generate better outcomes for our shareholders than our in-house grocery effort,’ a Zomato spokesperson stated.
Last month, the Competition Commission of India (CCI) had approved the proposed acquisition of 9.3 per cent stake by Zomato in e-grocer Grofers. The acquisition involves an investment of $100 million by Zomato in the online grocer platform.
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