The company said in a letter sent to the shareholders, “There is a slowdown in the food delivery business since October last year. This trend is being seen across the country. Due to this, the increase in Jomato’s gov in the third quarter remained only 0.7 percent. However, Gov has been growing 21 percent in Gov on a year-on-year basis.” Gov has a total value of all discounts except tax, customer delivery charges, tip. The value of the company was Rs 6,680 crore in the December quarter.
Jomato had reported in the results for the October-December period earlier this month that its consolidated revenue increased by about 75 percent to Rs 1,948 crore. However, the company’s loss increased to Rs 346 crore. This includes data of the company’s unit Blinkit and Hyperpure. The company’s adjustable revenue increased by about 30 percent in the December quarter due to the company’s year-on-year basis. However, it has decreased on a year-on-year basis.
Last month at the end of last year, e-commerce company Amazon decided to stop its food delivery in the country. The company was getting a tough competition from Swiggy and Zomato in this business. Earlier, Amazon also closed its Edtech unit. The company had informed its restaurant partners to close this service from 29 December. This unit of the company is called Amazon Meals. Restaurant partners were assured to fulfill payments and other liabilities related to contracts by 29 December. The letter sent by the company said that the restaurant partners would continue to access the company’s tools and reports by the end of January. Amazon Meals in the country was started from Bengaluru to compete with Swiggy and Zomato and later extended.
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