InvestorQ : Why has Zomato decided to pull out of the grocery delivery business?
sarah Leo made post

Why has Zomato decided to pull out of the grocery delivery business?

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Rashi Mehra answered.
3 months ago
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It is about core competency and Zomato wants to stick to delivering food in the best possible manner. Hence it has decided to pull out of its beta project in the grocery delivery business. Zomato had observed sustained gaps in order fulfilment and poor customer experience. This was largely due to stiff competition from rivals. Also, with the recent stake in Grofers, Zomato wants to rely on Grofers for the grocery delivery business.

Zomato believes that Grofers would be able to generate better results in grocery delivery. Grofers is already into the 10-minute hyperlocal delivery model and Zomato trying to build a competing business of grocery delivery would be like reinventing the wheel. Swiggy and Dunzo also have grocery delivery but follow a model of dedicated dark stores. This ensures that groceries are delivered to the customer in under 30 minutes.

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