Zomato, a popular food delivery app in India, recently released its Q3 financial earnings report, which showed a widening of losses. The company’s losses reached Rs 346.6 crore, due to a reduction in its food delivery business. Despite the unexpected slowdown in demand, Zomato remains optimistic about reaching its profitability goal.
However, the company’s optimism is not without challenges. In order to boost its profits, Zomato has ceased operations in 225 smaller cities, due to unprofitable performance in these markets. The exit from these smaller cities, which only contributed 0.3% to Zomato’s gross order value in the December quarter, was a difficult but necessary decision for the company to make.
In addition to ceasing operations in small cities, Zomato has also recently re-launched its Gold subscription program in India as a way to drive loyalty and increase ordering frequency. So far, the company reports that over 9 lakh members have joined the program.
While Zomato’s decision to exit smaller cities and focus on boosting profits may result in short-term losses, the company remains confident in its ability to reach its financial goals. The future of Zomato and the Indian food delivery market remains uncertain, but the company’s efforts to remain competitive and profitable are commendable.
