Zomato To Shut Down Its Food Delivery Services In UAE This Month

Food tech unicorn Zomato has announced that it is shutting down its UAE-based food delivery services. Users of the Zomato app will be redirected to Talabat, a Kuwait-based food delivery service, starting Nov. 24, Khaleej Times reported.

Although Zomato sold its UAE wing to Talabat in 2019, the former had been offering its services to Talabat as per a cost-reimbursement contract between the two parties.

While it is not known how many Zomato employees will lose their jobs following the company's decision to end its services in the UAE, the Indian food delivery major has promised to take care of its employees with a generous severance package.

"As an organization, we are well-positioned to support our people adequately and are here to enable this transition in the best way possible for their careers," the company said in a statement, as per Gulf News.

"The severance package extended includes financial and outplacement support along with due healthcare benefits," the statement added.

Apparently, Zomato is in the middle of a revamp and while its delivery service is coming to an end, the brand is planning to focus more on dining-out and restaurant discovery services, Caterer Middle East reported.

The food-tech giant is reportedly on course to release an Instagram-like platform called "Vibe Check," through which restaurant owners can share engaging updates, short videos and stories to attract their online customer base. "Vibe Check" has already begun trials in India.

Meanwhile, the company's new discount program "Zomato Pay" will reportedly "enhance the value for both the customer and the restaurant partner," said a report by BW Disrupt. With Zomato pay, users can make payments through the Zomato app at all partner restaurants and avail of discounts and cashback.

"We are redefining the way our customers experience dining out through the launch of a new feature called "Vibe Check" along with "Zomato Pay," which will further enhance the value for our customers as well as restaurant partners," Zomato said in an email to Caterer Middle East.