Zomato rolls back operations from 9 countries in a cost cutting bid
Zomato is a restaurant search and discovery service founded in 2008 by Deepinder Goyal and Pankaj Chaddah. It currently operates in 23 countries, including India, Australia and the United States. It features restaurant information such as scanned menus and photos sourced by local street teams, as well as user reviews and ratings. The company also provides cashless payment, online ordering, white-label apps, table reservation, and point-of-sale systems.
However, in a latest bid by the company to cut costs, amidst rising losses, has recently rolled back its operations from 9 countries out of 23 overseas market, reducing its operating costs to $1.7 Mn, a 81% drop from earlier $9 Mn. This includes the markets of the US, UK, Sri Lanka, Ireland, Chile, Canada, Brazil, Italy, and Slovakia. However, later Zomato clarified that Italy and Slovakia were not effectively core focal markets for them, and they do have on ground teams in both these markets.
It will continue focusing on India and UAE where it has a strong presence. Other than that, the other focus markets for them will be Qatar, Lebanon, Turkey, South Africa, Indonesia, Malaysia, Philippines, Australia, New Zealand, Portugal, Poland, and the Czech Republic.
Deepinder Goyal, CEO, Zomato while talking about the development mentioned,
“We have taken a remote management approach in these markets. We do not have any physical presence, but we will continue to manage the operations out of our headquarters in India,”