Food delivery company Zomato stated on Monday that it is going to discontinue its food ordering services for customers in the United Arab Emirates (UAE). This development came months after Deepinder Goyal, CEO of Zomato, told CNBC TV18 on 12 July that the company is only going to focus on its operations in India. He had added that international businesses don’t fit in their roadmap anymore. Zomato had exited from all international markets as a food delivery company in November 2021 after it decided to pull out from Lebanon. From 24 November, customers trying to order food on the Zomato app in UAE will be redirected to Talabat, as said by the company in its regulatory filing.
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Zomato had sold its UAE-based food delivery business to the firm Talabat in 2019. According to Zomato, the discontinuation is not going to have any material effect on the operations and financials of the company. It further added that it will continue to provide dining-out and restaurant discovery services in the UAE.
Zomato entered the UAE market in 2012. It ended up selling its food delivery business to the Delivery Hero Group in UAE for nearly $172 million in 2019. Delivery Hero Group had made an agreement with Zomato Media to purchase its business through Delivery Hero’s fully owned subsidiary Talabat Middle East Internet Services Company LLC.
Zomato’s revenue this quarter:
The company has also discontinued its Pro and Pro Plus membership, and now it is working on a new loyalty programme for food delivery. Its revenue from Zomato Pro significantly fell to Rs 9 lakh.
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Zomato’s net loss stands at Rs 251 crore for the quarter ended on 30 September against Rs 430 crore a year ago. Revenue from operations increased by 62 percent to close at Rs 1,661 crore from Rs 1,024 crore.
In a recent development, Rahul Ganjoo, Zomato’s new initiatives head and former food delivery chief has resigned from the company. He quit the company after being associated with it for five years. Ganjoo had previously worked in product management roles in companies such as Twitter, Snapdeal, and Symantec. Earlier, Siddhart Jhawar, head of Zomato’s Intercity Legends, had resigned from the company on 7 November.
