Zomato to shut its grocery delivery service

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Zomato Ltd has abandoned plans to diversify into delivering groceries for the second time in two years, citing infrastructure gaps in a highly competitive online grocery market.Zomato will continue to operate its business-to-business (B2B) essentials and grocery delivery services for restaurants through its Hyperpure vertical.

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In a letter to its grocery partners on Friday, Zomato said, “Over the last two months of operations, we have had a few important realizations. Store catalogues are very dynamic, and inventory levels change frequently. This has led to gaps in order fulfilment, leading to poor customer experience."