On-demand delivery service Grofers has reduced its operations in India, by pulling out of 9 cities as they were not producing favourable sales figures. Grofers is present in 17 cities, where it facilitates the last-mile delivery service of food and groceries from local kirana stores to the customers.
Grofers has reportedly been funded by an array of investors to the tune of $165.5 million and has built a large hyperlocal reach, so this latest development is being watched keenly by industry insiders. It was reported that just 3 months back Grofers had to bring a temporary stop to operations in parts of Delhi NCR due to employee disputes, but this time it was purely business.
“We did not see these cities grow at the pace we expected, so we are investing in areas where we are seeing great uptake,” said Kshitij Torka, VP Marketing, Grofers.
Operations ceased in the following cities:
“We ran a series of marketing campaigns including television ads in these cities to test the markets and see if the volume picks up. Operations in cities that did not react to the marketing effort were shut. The smaller cities are not ready for hyperlocal business yet, once they are, we will reconsider our strategy,” stated Albinder Dhindsa, co-founder, Grofers.