Zomato has denied shutting down its 10-minute food delivery service following a report in the Economic Times stating that the company has informed its restaurant partners that Zomato Instant would be shut down soon. Why is it shutting down: The service was not profitable as per ET’s sources who added that the company was not registering the daily volume required to pay fixed costs. It has been known since May 2022 that the service was not off to a flying start as many partners were unable to deliver their orders within ten minutes during a pilot in Gurgaon. Why it matters: The development is significant because the service was launched less than a year ago amid controversy. Zomato believed that the 30-minute delivery was on its way to becoming obsolete whereas many believed that the plan was infeasible as it put delivery partners at risk in order to meet targets. The development is a sobering reminder that tech companies are operating in a challenging market where they cannot afford to lose money on bets taken when the economy is booming. What happens next: The company intends to pivot to a new product by experimenting with low-value packed meals—thalis or combo meals, ET reported. The offering will be launched in 7-10 days, the report added. A Zomato spokesperson clarified that Instant was not shutting down but the company was in the process of rebranding the service by working on a new menu. “All finishing stations remain intact, and no people are impacted…
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