Zomato, a food delivery service, is in trouble for several reasons, the main one being a 70% decline in stock price since it reached an all-time high in November of last year.
If we look at the performance of Zomato’s publicly listed international rivals like DoorDash, Delivery Hero, Just Eat Takeaway.com, and Deliveroo, we find that all of these companies are down between 50% and 65 percent year to date (YTD). Zomato is, however, badly underperforming them, with shares currently selling at a loss of approximately 70% year to date.
And the other major reason for which Zomato is in trouble is their high delivery charges.
As per sources, it is known that their delivery charges are more than their stock price. Due to these high delivery charges, customers are backing out of the platform and are getting furious. And the charges have been continuously rising over the past few years.
