Zomato to discontinue UAE ordering service; users will be redirected to Talabat

Food delivery firm Zomato on Monday said that it would be discontinuing its food ordering application for users in the United Arab Emirates (UAE).

The company said that from November 24, 2022 customers looking to order food through the Zomato app in UAE will be redirected to Talabat. Zomato sold its UAE-based food delivery business in 2019.

After selling the UAE-based business, the company had been rendering services to Talabat in return for cost reimbursement.

"The Company will discontinue rendering of services to talabat in the UAE w.e.f. November 24, 2022 and the customers looking to order food through the Zomato app in UAE will be redirected to talabat, as per the terms of the agreement between the parties," Zomato said in its regulatory filing.

Zomato said that the discontinuation will not have any material impact on the financials of the company and it will continue to offer restaurant discovery and dining-out services in UAE.

"We would further like to inform the exchange that this discontinuation will not have any material impact on the financials and operations of the Company. The Company will continue to offer restaurant discovery and dining-out services in the UAE," filing added.

Zomato’s net loss for the quarter narrowed to ₹250.8 crore against ₹434.9 crore registered in the same quarter last year. Meanwhile, revenue from operations zoomed 62.20 percent to ₹1,661.3 crore.

The company said last week that the gross order value of its food business rose 3 per cent in Q2 compared to the previous quarter.