New Delhi: In an unprecedented u-turn, Zomato has moved out of the liquor delivery enterprise which was began final yr amid the nationwide lockdown launched by the Central authorities.
The meals delivery main exited the enterprise attributable to scalability points and poor unit economics, in line with a report by Inc42. The Gurugram-based firm took the choice to close the liquor delivery enterprise in January 2021.
Confirming the report, an organization’s spokesperson informed the media agency, “We began Zomato wines in partnership with various state governments to ensure safe and responsible delivery during the lockdown. Earlier this year, as restrictions continued to ease, and in compliance with local laws in the mentioned states, we had decided to discontinue the service.”
Authorities in Jharkhand, West Bengal and Odisha had allowed Zomato and its rival Swiggy to ship liquor within the states to curb crowding at liquor shops. While Zomato has moved out of the enterprise, Swiggy continues to be delivering liquor in a couple of Indian states.
Zomato is presently gearing up for its preliminary public providing (IPO) which is prone to happen late in 2021. The firm is presently specializing in profitability and due to this fact transferring out of enterprise with excessive cash-burn and poor unit economics.
In addition to liquor delivery, Zomato had began grocery delivery final yr. The firm has additionally shut grocery delivery operations as effectively, to thoroughly concentrate on its meals delivery enterprise.
