Zomato’s Australia arm has been deregistered effective from June 11, 2023. The company announced the decision in a blog post, stating that it was “not commercially viable” to continue operating in Australia.
Zomato entered the Australian market in 2017, but it struggled to gain traction against local rivals such as Menulog and Uber Eats. The company’s Australian arm had just 100,000 active users as of March 2023, compared to Menulog’s 3.5 million and Uber Eats’ 2.5 million.
Zomato’s decision to deregister its Australian arm is a setback for the company, which has been expanding rapidly in recent years. The company is currently present in over 20 countries, and it has plans to expand to even more markets in the near future.
However, the deregistration of Zomato’s Australian arm is not a major concern for the company. Zomato is still profitable overall, and it has a strong presence in other markets. The company is also investing heavily in new technologies, such as artificial intelligence and machine learning, which could help it to grow even faster in the future.
Here are some of the reasons why Zomato’s Australia arm was not commercially viable:
- High competition: The Australian food delivery market is very competitive, with a number of well-established players already operating in the market.
- Low market share: Zomato had a very small market share in Australia, which made it difficult for the company to generate enough revenue to cover its costs.
- High customer acquisition costs: Zomato spent a lot of money on marketing and advertising in Australia, but it was unable to attract enough customers to offset these costs.
Overall, Zomato’s decision to deregister its Australian arm was a strategic move that was made in order to focus on more profitable markets. The company is still growing rapidly, and it is likely to continue to expand into new markets in the future.