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Zomato to Disband Indonesia’s Local Operation

The premium services, Zomato Pro / Gold get discontinued in Indonesia

Randi Eka - 20 October 2020

As an effect of the pandemic, Zomato is adjusting (downsizing) its business in Indonesia. After officially launched at the end of 2018, the Zomato Pro or Zomato Gold features were discontinued. It’s a paid service that users can use to get exclusive access to Zomato’s restaurant partners – including selecting menus and making reservations.

In the FAQ statement in the application, it is stated that the closure of this feature was due to the company’s decision to disband the local operational team in Indonesia – all employees affected by the layoff. As contacted, Zomato only provided information that Zomato’s basic service (restaurant directory) is still accessible in Indonesia, its operations are carried out remotely from India.

The F&B sector has been badly hit by Covid-19. Last May, Zomato reportedly laid off 13% of its total employees. Also, for those who stayed, there is still a deduction of up to 50%.

In order to strengthen the business foundation and accelerate growth,  Zomato’s parent company has been intensively raising series J funding since April 2020. The latest funds were announced a few days ago, Kora Investment participated in investing $52 million. According to Fintrackr, Zomato currently has a valuation of around $3.5 billion along with this round.

Zomato alone has been existing in Indonesia since 2013. Thanks to impressive business growth mid-decade, in 2016 the Indian startup has achieved Break-Even Point (BEP), including for its business unit in Indonesia.

Aside from Zomato, there are several similar services in Indonesia, two of which are Qraved and Eatigo.

– Original article is in Indonesian, translated by Kristin Siagian Header: Depositphotos.com

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