During its third-quarter financial earnings report, food delivery company Zomato said that its losses have increased.
The company also announced that it had stopped operations in 225 small towns given the losses.
In the food delivery business, the company incurred a loss of Rs 346.6 crore in the quarter that ended in December.
The company said in its third-quarter report, “The slowdown in demand was well beyond expectations, which is impacting food delivery profits. But despite this, we feel we are well positioned to meet our profit targets.” ”
It is worth mentioning that Zomato is one of the most used food delivery apps in India and has recently relaunched its Gold subscription in an attempt to boost profits.
Surprisingly, the company has decided to move out of 225 smaller cities at a time when it is planning to hire around 800 people.
The company mentioned in its financial earnings report that Zomato stopped operations in 225 small cities in January.
Talking about the move, the company said, “The performance of these cities was not very good in the last few quarters, and we did not feel that our investments in these cities would pay off.
However, it is unclear who will be affected by this move.” Cities have been affected by
The company also talked about the measures being taken to increase its profits. It has recently relaunched a Gold subscription in India.
Talking about the same, the company said, “We launched a new membership program, Zomato Gold, in late January.
We expect this to drive profitability.” The company also claimed that more than 9 lakh members had joined the program.
