This pivot comes after the company struggled to find ways of growing Zomato Instant.
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
"Instant is not shutting down... and no people are impacted by this decision," Zomato has said.
Zomato had forayed into Canadian food delivery territory way back in 2014 with about $10 million as a part of its expansion strategy and as a useful segue into the US markets.
''Zomato's new delivery model will raise the number of orders per delivery boy which may improve cost efficiency for the company,'' said Karan Taurani, Senior Vice President - Research Analyst, Elara Securities.
Zomato Instant will be launched in Gurugram next month with four stations, founder Deepinder Goyal announced adding that the company will not penalize delivery agents for late deliveries.