Prabhu RamFood delivery platform Zomato on Tuesday refuted reports that the company is in talks with Gurugram-based grocery delivery platform Grofers to acquire it for nearly $750 million. Flush with funds, Zomato has partnered Grofers for the delivery of essential items along with other FMCG and grocery stores — to meet the surge in demand amid social distancing and nationwide lockdown that has now been increased till May 3.
In a statement shared with IANS, Zomato said that the company has partnered with Grofers, along with other FMCG companies, local groceries stores and modern retail chains, to pilot its grocery delivery service.
“We are not aware of any other conversation with Grofers,” a Zomato spokesperson added.
According to Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research (CMR), companies are looking at creative pivots to stay relevant by pursuing new growth opportunities on the back of the new coronavirus pandemic.
“Expanding into near adjacencies is a given for companies, such as Zomato. From Zomato’s perspective, a partnership or acquisition of Grofers would provide it a good leg-up in its competition with Swiggy to win big in the grocery delivery segment,” Ram told IANS.
The company has also launched the ‘Feed the Daily Wager’ initiative to support and ensure meals for workers at construction sites, shops, restaurants, delivery staff, and local transport systems who earn on daily basis.
As part of this campaign, the food delivery giant is providing ration kits to the daily wager communities that are currently unable to support their family’s food requirement.
Source: LiveMint
