Zomato has reportedly decided to focus on areas that have the potential to become meaningfully large businesses over the next ten years. The food delivery platform plans to focus on three areas, food orders and delivery, quick commerce, and providing supplies to restaurants, according to a report. The company’s renewed focus was reportedly revealed to shareholders at Zomato’s annual general meeting on Tuesday. Shareholders were also informed that the firm’s food delivery business was headed for profitability, as per a report.
At the company’s annual general meeting on Tuesday, Zomato Chairman Kaushik Dutta revealed that the company would narrow its focus to delivery of food, the company’s Hyperpure service, and quick commerce, according to a report by PTI.
The company was able to keep its “adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) burn under control” while achieving strong growth, amid the ongoing coronavirus pandemic, and economic concerns in the current fiscal year, according to Dutta.
Dutta reportedly stated that Zomato’s saw a 15 percent decline in segments related to dining-out in the current fiscal year, after COVID-19 related lockdowns as well as the company’s decision to discontinue its international operations and non-core businesses.
According to the report, the company will now focus on areas that could grow into meaningfully large businesses over the next decade, keeping in mind the size and scale of the platform. Shareholders were also informed that the company’s business was stable and headed for profitability, while the food delivery industry in India had a large runway for growth, according to PTI.
Zomato currently has 4,500 EV delivery partners while 18 percent of orders were delivered on bicycles as of March, according to Dutta. Meanwhile, the company reportedly plans to put a phone number on its partners’ bags, which customers can call to report speeding.
The company’s chairman also stated that adoption for the company’s Hyperpure supply services for restaurants has increased. Dutta said that the Zomato’s acquisition of Blinkit was completed in August and the company was working on integrating personnel, as per the report.