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Zomato all set to scrap its grocery delivery, nutraceutical business from September 17; Here's why
A spokesperson of the food delivering app accepted that the company wanted to shut its grocery delivery service and, as of now, had no plan to run any other form of grocery delivery on its platform.
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Foodtech platform Zomato has pulled the plug of its business Nutraceutical. This development comes hours after the company decided to shut down its grocery delivery business from September 17, citing tough competition and moderate success.
Zomato shuts down nutraceutical business
In 2020, Zomato had started its nutraceutical business with the launch of health and fitness products.
According to a report, the company has taken this harsh decision at a time when the government is on the way to become stricter about private label norms for marketplace businesses in the country.
Nutraceuticals can be understood as something that is related to food products that offer medical or health benefits. The products can range from food to beverages or even tablets that claim to prevent or cure chronic diseases
Tapping this opportunity last year, the company has also appointed Gaurav Gupta, Chief Operating Officer as the head of this division for five years.
"This business an potentially be a large value driver for Zomato in the future," Gupta had said last year
Zomato made it clear that the company wanted to scrap its pilot grocery delivery service
According to reports in NDTV, Zomato in an email to its grocery partners told PTI that the company wants to terminate its pilot grocery delivery service soon as it doesn't think the current model is serving them the best way possible to deliver service to their customers. The mail further said that the company believes in delivering the best services to its customers and the largest growth opportunities to their merchant partners. But the current model was not proving to be the best way to deliver services. Zomato made it clear that the company wanted to scrap its pilot grocery delivery service from September 17, 2021.
The email also mentioned that store catalogues were dynamic and inventory levels kept changing, making it difficult for Zomato to provide a satisfying customer experience. A spokesperson of the food delivering app accepted that the company wanted to shut its grocery delivery service and, as of now, had no plan to run any other form of grocery delivery on its platform.
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