A day after media reports claimed Zomato is shutting down it 10-minute food delivery service, the company has refuted the same and announced that it is rebranding the business.
As per earlier reports, the company had decided to scrap Zomato Instant due to struggle with its growth amid tough market conditions and challenges in achieving profitability that the company hoped for.
“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," a Zomato spokesperson said.
The stock fell 14 percent intraday on January 25, 2023, which is the steepest fall since January 24, 2022 when it saw a 19 percent drop. Its shares were trading at Rs 48.05 on NSE as of 1.27 P.M down 7.6 percent compared to yesterday’s closing of Rs 52.