Why Zomato exits 225 cities? know the reason here
Pubnews: Why Zomato exits 225 cities? Due to huge losses! Zomato, an online food delivery company operating in 225 cities across the country, has announced that they will withdraw their services from some cities due to poor performance and low demand. According to the company’s annual report, the October-December quarter posted a revenue of Rs 1,948 crore, resulting in a loss of Rs 346 crore, higher than the previous quarter.
However, the decision to move out of some cities could result in the loss of hundreds of jobs associated with online delivery. Despite the recession, Zomato’s CEO recently announced the hiring of 800 new employees, a stark contrast to layoffs at other IT companies.
In contrast, another online food delivery company, Swiggy, is facing financial difficulties and is expected to cut 8 to 10 percent of its workforce. Businesses across the country are being affected as demand for online food delivery drops.
It is worth noting that Zomato was operating in 1000 cities in 2021-22 and a sudden drop in demand in 225 cities prompted the company to withdraw its services. The company did not specify which cities would be affected by the decision.
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