Zomato has launched it’s 10-minute food delivery service Zomato Instant in March , 2022. Now the company has decided to shut down this service less than a year after it was launched as in tough market conditions , it had to chase profitability.
According to Economic Times Zomato is experimenting with low-value packed meals- thalis or combo meals . It has not been decided that Zomato will retain 10-minutes preposition for this and the new offering will be launched in 7-10 days , one of the sources of ET said.
Initially this service was started by the company as nobody in world has delivered hot and fresh food in 10 minutes and they wanted to be the first to create this category. The company launched this service mostly in National Capital Region and recently this service was introduced in Bengaluru.
Zomato used to charge 18-25% commission per order for deliveries depending on it’s arrangement with restraint partners on it’s marketplace Still the company was not able to meet the expected the profits from this service and they had to take this decision keeping in mind the profitability factor.
The company has taken the decision to shut down this service as this service didn’t turn out to be profitable and they were not able to get daily volume required to pay the fixed costs. However the company claimed that they were rebranding the Instant service. In a statement given by company , “ Instant is not shutting down . We are working on a new menu with our partners and rebranding the business. All finishing stations remain intact and no people are impacted by this decision.”
