Zomato expects its business to recover from all the disruptions caused due to lockdown and other measures during the corona times to recover within the next three to six months.
The imposed lockdown caused all businesses, including restaurants, to shut down due to which Zomato (1) saw a fall in its rate of orders. With more people moving back in the cities for work, the demand seems to rise more with time.
The Gurgaon-based company’s total revenue is estimated to reach around 60% of pre-Covid peaks of $23 million per month by July. The company’s mid-Covid performance report mentioned that the Gross merchandise value (GMV) for the company’s core food delivery business (India) dipped by 80% in the last week of March.
60% recovery made
Compared to the peak pre-Covid week in mid-February, the lowest point in two years. It has now recovered to almost 60% of pre-Covid levels.
Zomato said, “We expect sharp recovery in order volumes as lockdowns continue to ease and the operating environment continues to improve.”
Zomato & Swiggy had seen a considerable drop in order volumes after the outbreak of Covid-19 in March. A shift in consumer preference for hygiene over convenience contributed towards the crushing volumes, and corporate India’s move to work from home also played a role in defeating the businesses.
Working professionals going to office contribute to a major chunk of food aggregators’ customer base.
Link : https://timesnext.com/zomato-expects-business-recover-next-3-6-months-pandemic/
Author :- Saumya Uniyal
July 11, 2020 at 05:46PM
TimesNext