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Grofers shuts down delivery operations in 9 cities


Services stopped in Ludhiana, Bhopal, Kochi, Coimbatore and Visakhapatnam.

Last-mile delivery service, Grofers India has shut delivery operations in nine cities in the past 15 days because of low acceptance of its services in these areas.

It ran pilot projects in 15 new cities in September. The nine cities where it has decided to stop services include Ludhiana, Bhopal, Kochi, Coimbatore and Visakhapatnam.

“We ran a series of marketing campaigns including television ads in these cities to test the markets and see if the volume picks up,” said, Albinder Dhindsa, co-founder, Grofers.

Operations in cities that did not react to the marketing effort were shut. The company now operates in a total of eight cities. “The smaller cities are not ready for hyperlocal business yet, once they are, we will reconsider our strategy,” he said.

Grofers had a team of 20-30 people employed in these cities who are being relocated. In November 2015, Grofers raised USD 120 million in funding from Japan’s SoftBank Corp., Russian entrepreneur and venture capitalist Yuri Milner and existing investors Tiger Global and Sequoia Capital.

“We are more focused on stabilising our businesses, concentrating on expanding our categories. We want to achieve few of our internal targets before we think of increasing our capacities. This would take about two to three months,” Dhindsa told media in on November 24 last year.

Source: The Mint

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