Somato, a food delivery company launched in 2008 and operating in all corners of the world, has reported a decline in revenue of ₹ 346.6 crore for the quarter ended December. It was ₹ 63 crore in the previous year.
Earlier, the online food delivery platform posted a net loss of around ₹ 250.8 crore in the second half of the financial year 2022-23. The company said the decline is now increasing. Revenue from operations for the December quarter was up 75% from a year ago at ₹ 1,948 crore.
However, the company failed to meet the profit target set for the last financial year. ₹ 346.6 crore short of the company’s revenue target. The number of users of this app, which is available from big metro cities to small towns, has been dwindling for the past few months.
Around 225 cities across the country did not do business as expected. Due to this, there has been a huge loss, said Somedo. It also plans to temporarily stop its services in certain cities where expected business is not happening.
But the company has not released any information about which cities the service will be stopped. Due to this suspension of services, there is a possibility of loss of jobs of the delivery people who are currently working in those areas. There is a risk that all the people who joined Somato because they have a car and a phone will be fired from their jobs.
The current financial recession is unexpected. This affects the growth of food supply profitability. However we are trying to achieve the profit target. Somato said that this temporary service suspension is only to adjust the profit target.
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