Zomato, a well-known food delivery company in India, has recently reported significant losses in the quarter ending December. As a result of these losses, the company has ceased its operations in 225 smaller cities. This was revealed in Zomato’s third-quarter financial earnings report, which showed a widening of the company’s losses.
The company’s spokesperson said, “Performance of these cities was not very encouraging in the past few quarters, and we did not feel the payback period on our investments in these cities was acceptable.”
And added “We launched a brand-new membership program, Zomato Gold, in late January… We expect this program to drive loyalty and higher frequency of ordering going forward,”
To improve its financial performance, the company has decided to exit these smaller cities which were not generating encouraging results. It was noted in the report that these cities contributed only a small portion of the company’s overall revenue.
To boost its profits, Zomato has launched a new membership program called Zomato Gold. The company believes that this program will increase customer loyalty and encourage customers to order more frequently. The company has claimed that over 9 lakh members have already subscribed to this program.
Zomato’s CEO, Deepinder Goyal, has also announced plans to hire 800 new employees for various positions within the company. The company posted job vacancies on LinkedIn but faced criticism for one of the job postings which required employees to work 24/7 with no work-life balance. Despite this, the company remains optimistic about its future and is looking to grow its workforce.
Zomato’s recent decision to stop operations in 225 smaller cities and its focus on the new Zomato Gold membership program are steps aimed at improving the company’s financial performance and securing its future.
