Zomato is shutting its own grocery delivery business for the second time since last year. The online food delivery firm announced on Monday to shut its in-house grocery delivery service from September 17. To recall, Zomato first entered the grocery delivery business during the first phase of the pandemic around April last year.
Stating “gaps in order” as the reason behind shutting the grocery service, Zomato said that there were gaps in order fulfilment and that led to poor customer service. The food delivery platform said that it has been struggling to fulfil the under 15-minute delivery promise due to dynamic store catalogues and frequently change in inventory levels. This, the company believes led to poor customer service.
Zomato shuts grocery delivery service
In an official email on the matter, Zomato noted, “We don’t believe that the current model is the best way to deliver these to our customers and merchant partners. Hence, we intend to stop our pilot grocery delivery service effective 17 September, 2021.”
“Over the last 2 months of operations, we have had a few important realisations. Store catalogues are very dynamic and inventory levels change frequently. This has led to gaps in order fulfilment, leading to poor customer experience,” the company added.
Zomato further said, “In the same period, the express delivery model with under 15-minute delivery promise and near-perfect fulfilment rates, has been getting a lot of traction with customers and expanding rapidly. We have realised that it is extremely difficult to pull off such a model with high fulfilment rates consistently in a marketplace model (like ours).”
The company believes that its investment in the online grocery platform Grofers will be much better for business and generate better returns for shareholders.
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